Defining ESG Content A legacy of leadership 3 What’s new? 4 ESG refers to a framework that integrates environmental, social, and governance risks and opportunities into an organization‘s strategy. The ESG imperatives in government 6 ESG movement has quickly evolved from socially responsible investing to a global imperative, affecting not only investment decisions and shareholders but also business strategy, the global economy, and Urgent priorities 7 people around the world. For governments, the goal is to build long-term sustainability and achieve desired outcomes for Four roles of governments in addressing ESG 9 constituents and other stakeholders. ESG includes a wide range of categories to assess the impact of a government agency‘s services and practices on the planet and society. Key considerations 13 ESG factors include: • Environmental criteria to examine how an From pain to purpose 14 agency performs as a steward of the natural environment • Social criteria to examine how an agency treats Shifting the mindset, reaping the benefits 15 people, including its employees and the communities in which it serves or operates • Governance criteria to examine how an agency Governments in action 17 holds itself accountable and is governed. Now is the time 18 KPMG stands ready to help 19 About the research 20 1 Environmental, Social, and Governance: Government leadership as a catalyst for success Environmental, Social, and Governance: Government leadership as a catalyst for success 2 © 2022 KPMG LLP, a Delaware limited liability partnership and a member firm of the KPMG global organization of independent © 2022 KPMG LLP, a Delaware limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.