Phin's theory of 'volatility' as a potential measure of sustainability: An ESG,CAPM oriented Approach
INTRODUCTION As environmental, social, and governance (ESG) factors continue to gain prominence in the corporate world where risk keeps on evolving, their role as a indirect potential critical measure of sustainability risk should also be recognized, meaning that where ESG is mentioned then sustainability falls a victim also. The concept of ESG started back in the mid-2000, though; the principles behind ESG are decade or centuries old. A 2004 report from the United Nations titled who cares wins carried what is widely considered the first mention of ESG in the modern context. Sustainability risk is an unforeseen situation that affects a company financially and reputation when it fails to effectively address ESG principles. Recently, climate risk which is a “E” category have become the talk of the world. The “S” category which comprises of the relationship between the companies with employees, customers, community among othe...