ESG Metrics Explained

In this post, we will look at ESG metrics and their related pieces of information.

ESG metrics Uses

ESG metrics are used to assess a company’s vulnerability to a variety of environmental, social, and governance risks. These metrics can be applied to a variety of ESG integration strategies, including benchmarking and scenario analysis.

The use of ESG metrics in investment analysis is similar to traditional financial analysis; for example, when comparing a company’s revenue growth or margins to those of its peers. However, the key difference with ESG metrics is that they use non-financial data, such as the level of greenhouse gas emissions or the number of health and safety incidents in a year.

This means that ESG metrics can help us to understand a company’s exposure to ESG risk but, on their own, they don’t tell us the impact of this risk on a company’s future earnings and cash flows. Other ESG data is therefore often used alongside ESG metrics during investment analysis.

Key Learning Points

  • ESG metrics are often used during ESG investment analysis, to assess a company’s exposure to ESG risk
  • ESG metrics are non-financial metrics that help measure the various ESG risks faced by companies. ESG metrics are different from financial metrics, such as EPS or EBIT, as these are expressed in non-monetary units
  • Environmental metrics measure environmental risks which include carbon emissions, energy efficiency, waste management and whether a company’s inputs and outputs are recycled
  • Social metrics measure social and human capital risks which include a company’s supply chain, product safety, data security, labor practices, and employee health and safety
  • Governance metrics measure governance risks which include business ethics, management remuneration, board/ownership structure and financial reporting transparency

ESG Metrics Explained

Environmental Metrics

Environmental metrics help us to assess how much a company’s activities generate pollution & waste or use finite natural resources.  Investment analysis often considers the trend in the metric (such as the % change in landfill waste from one year to another) as well as the ‘intensity’ of the metric relative to the company’s productivity (such as the amount of landfill waste per m$ of revenue). Intensity metrics are particularly useful when comparing a company to its peers.

Below shows common environmental risks faced by companies and the metrics used to measure these risks:

Environmental RisksEnvironmental Metrics
Carbon Emissions (“Greenhouse Gas” or “GHG” Emissions)● Amount of GHG emissions (Mtons) ● Emissions intensity (Emissions per unit or m$ revenue)
Energy Efficiency● Amount of energy used (mj) ● Energy intensity (Energy per unit or m$ revenue)
Waste● Amount of waste generated (Mtons) ● Waste intensity (Waste per unit or m$ revenue)
Product life cycle● % product from recycled materials ● % product recyclable or compostable (including packaging)

Social Metrics

The social risks faced by a company are linked to both social capital and human capital. Social metrics rely on event counts or the number of high-risk events that have occurred during the year.

Social and Human Capital RisksSocial Metrics
Supply chain● % revenues/suppliers covered by supplier codes of conduct or principles recognized within an industry
Product safety● Fines/litigation related to product safety ● Number of product recalls
Data security● Number of data breaches per annum ● Fines related to data security
Labor practices● Employee turnover ● Fines/litigation related to employee matters
Employee health and safety● Lost time (employee hours lost to health and safety) incident rates (LTI per 100 employees) ● Fatality rates per annum

Governance Metrics

The following are commonly used metrics to measure the key governance risks faced by businesses:

Governance RisksGovernance Metrics
Business ethics● % revenues in countries with high corruption risk ● Fines/litigation related to business ethics
Management remuneration● Total amount of executive pay/EBIT ● % executive pay performance-based (salary versus bonus)
Board/ownership structure● Age/gender/expertise diversity on board ● % equity owned by the board (high levels of management ownership may increase governance quality)
Accounting/disclosure transparency● Earnings quality (e.g., the number of exceptional items) ● Absence of key disclosures

A key limitation for governance metrics is that the underlying information can be very qualitative in nature. For example, analysts may want to assess the quality of management policies and procedures in place for managing corruption risk. To overcome this qualitative issue, analysts often assign a ‘quality score’ to the company’s policies and procedures, allowing them to compare the company to its peers.

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Complete Guide to NSFAS Online Loan Application for South African Students (2025)

If you are a South African student looking to pursue higher education but are facing financial difficulties, the National Student Financial Aid Scheme (NSFAS) is one of the most accessible funding options available. NSFAS provides financial aid in the form of bursaries and loans to qualifying students at public universities and TVET colleges in South Africa.

This guide will walk you through everything you need to know about the NSFAS loan application process, from eligibility requirements to application steps and frequently asked questions.

📌 What is NSFAS?

The National Student Financial Aid Scheme (NSFAS) is a government-funded financial aid scheme aimed at helping students from low- and middle-income households to access tertiary education without the burden of upfront fees.

NSFAS offers both bursaries and income-contingent loans:

  • Bursaries: For eligible students who meet academic and household income criteria (especially for TVET and university students).
  • Loans: For students who do not meet all bursary criteria or who are pursuing postgraduate qualifications not funded under bursary schemes.

✅ Who Qualifies for an NSFAS Loan?

To qualify for an NSFAS loan (especially for postgraduate students or programs not funded under the bursary system), you must:

  • Be a South African citizen.
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  • Maintain satisfactory academic progress (returning students).

📚 Courses Funded by NSFAS

NSFAS primarily funds undergraduate qualifications, but certain postgraduate programs (e.g., PGCE, postgraduate diplomas in education, and professional courses like LLB) may be considered under the NSFAS loan scheme, not bursaries.

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📄 Required Documents for NSFAS Application

When applying, make sure you have the following documents scanned and ready:

  1. Certified copy of your South African ID or Smart Card.
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  3. Proof of income (latest payslips, UIF, or affidavit if unemployed).
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  5. Proof of registration or acceptance at a public institution.
  6. Academic transcripts (for continuing or postgraduate students).

🖥️ How to Apply for an NSFAS Loan Online

Step-by-Step NSFAS Online Application Process (2025)

  1. Visit the NSFAS Website

    Go to: https://www.nsfas.org.za

  2. Create an Account

    • Click on “MyNSFAS” and register your profile.
    • You’ll need a valid email address and South African cellphone number.
    • Choose a strong password and verify your account via email or SMS.

  3. Login and Start the Application

    • After registration, log in to your MyNSFAS account.
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  4. Fill in Your Personal Details

    • Input your ID number, name, surname, and other details exactly as they appear on your ID.
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🗓️ Important NSFAS Dates (2025)

  • Application Opening Date: September 1, 2025
  • Application Deadline: January 31, 2026
  • Appeals Period: February 2026 (if rejected)
  • Disbursement: After registration and approval

Note: Dates are subject to change; always confirm on the official NSFAS website.

💸 What Does the NSFAS Loan Cover?

NSFAS funding typically includes:

  • Tuition fees
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  • Meals and transport
  • Learning materials (e.g., textbooks)

For loans, repayment is only required once you start working and earn above a threshold (around R30,000 annually, but subject to change).

🔄 NSFAS Loan Repayment

Repayments are:

  • Income-contingent – you only repay when you can afford to.
  • Administered by DHET (Department of Higher Education and Training).
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You can also apply for a partial loan conversion to a bursary if you perform well academically.

🔁 How to Appeal a Rejected NSFAS Application

If your application is rejected, you may submit an appeal via your MyNSFAS portal:

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📱 NSFAS Contact Information

📝 Final Tips Before Applying

  • Apply early to avoid system overload near the deadline.
  • Use your own email and cellphone number (do not use someone else’s).
  • Double-check that all your documents are certified and legible.
  • Keep a copy of your submission confirmation for reference.

By following this guide, you can confidently apply for NSFAS funding and move one step closer to achieving your academic and career dreams—without the burden of immediate financial pressure.

 

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