Sustainability in corporations? Get to know ESG issues!
ESG, which can nowadays be practically confused with the concept of corporate sustainability, stands for environmental (Environmental), social (Social) and governance (Governance+) issues. Over time, it has evolved from the term CSR (corporate social responsibility), or corporate social responsibility, and builds on the idea of pragmatic corporate growth and value creation over the long term.
With the European Corporate Sustainability Reporting Directive (CSRD) coming into force in January this year, massive preparations by companies for the new obligations have kicked off. ESG reporting is all about a number of internal processes (and the report itself is thus “just” the tip of the iceberg). The obligation will affect not only around 50,000 companies in the EU, but also an estimated 10,000 more companies based outside the EU. The transformation of the labour market has already begun – companies are creating new ESG departments, statutory body members are being trained (or replaced), risk management departments are routinely assessing climate change, etc.
The Faculty has long been monitoring new trends in business and the business environment and offers a number of courses on ESG to students who would like to focus on this topic:
Subjects with ESG themes
FIR lecturers are also nominated as experts to various advisory bodies, both nationally and internationally, serve as observers in a number of associations or speak at international forums:
- Platform on Sustainable Finance, which acts as an advisory body to the European Commission on the link between corporate sustainability and finance
- Czech Circular Hotspot (Czech language), bringing together business and non-business sectors
- Speaking at the G20 (Environment) Forum, which addressed the topic of circular economy
- and others: Human Rights and Modern Technology Committee of the Czech Government Council (Czech language), Critical Infrastructure Association (Czech language), Compliance Academy (Czech language) or International Compliance Association
FIR as a leader in ESG
The faculty facilitates and supports thesis supervision on sustainability, sustainable business, ESG and ethics.
Opportunity to do an internship or practicum on ESG in the business and non-profit sector (e.g. development of ESG reporting, risk assessment, etc.) – internships and practicums facilitated by the faculty are accredited and students can earn up to 21 credits for successful completion of the internship.
The Faculty was the first and only one to start teaching ESG reporting (CZ) according to the planned European rules (see here).
The faculty teaches a unique minor specialisation linking ESG with compliance and corporate governance, which is led by experienced teachers from practice and the best students are allowed to attend the educational programme (CZ) of the Czech Banking Association free of charge thanks to an exclusive cooperation.
The faculty collaborates with renowned companies and organizations in the field of ESG – both in teaching and lecturing.
The Faculty is developing close cooperation with the European Investment Bank – the first bank to announce compliance with the principles of the Paris Agreement on Climate Change. Each year, our students have the opportunity to attend a summer school (CZ) from the European Investment Bank, for example, focusing on financing and the transition to a sustainable economy.
The Faculty has a long-standing Institute for Sustainable Business led by Prof. Šauer.
The Faculty, together with Charles University, organizes the prestigious annual conference “Environmental Economics, Policy and International Relations” with experts in environmental economics.
Why is ESG relevant?
ESG is increasingly important to investors, banks, clients and other stakeholders. Companies that prioritise ESG are better positioned to manage long-term risks and opportunities in the transition to a more sustainable economy.
As more and more companies prioritise ESG principles, there is a growing demand for professionals with expertise in this area. By enrolling in ESG-related courses, you can gain the skills and knowledge to accelerate your future career.
Companies that favour ESG are often more innovative, have better risk management practices and are more likely to attract and retain talented employees. Get ahead of the curve and increase your chances of landing an interesting job.
ESG is not just about increasing profitability, but also about creating a positive impact on the environment and society. By understanding ESG at a company level, students can contribute to a more sustainable future for the whole society.
Why is ESG relevant for the Faculty?
answers the Dean of FIR doc. Ing. Josef Taušer Ph.D.
“On the one hand, the concept of ESG carries a strong financial connotation – it is mainly one of the pillars of the framework for sustainable financing – ESG reporting of companies is intended to facilitate a better and comprehensive understanding of their business model (whether it is sustainable in the long term, how value is created), and thus lead to a more faithful valuation (thanks to uniform transparency). On the other hand, the matter should be seen as an opportunity to reopen traditional management topics in a new context: stakeholder engagement, the scope of the duty of care (inclusion of ESG assessment among the so-called fiduciary duties), risk management (ESG as an operational risk), treatment of negative externalities, company value creation and identification of new opportunities, etc.”
How did the FIR react to the interest in ESG?
answers the Dean of FIR doc. Ing. Josef Taušer Ph.D.
“Given that the faculty has renowned experts, it was not a problem to modernize the teaching and satisfy the offer from both the practice and the students. I would especially highlight the unique cooperation with the European Investment Bank (organizing a summer school), which is a real leader in the ability to assess the business sustainability of specific economic activities (as part of the mandatory screening for the purpose of financing various investment projects).”
