This report discusses the ESG issues of air pollution and its health implications, systemic and enterprise-level financial risks, and the actions necessary to resolve them. Among the recommendations for companies are recognising air pollution as a risk, creating a governance structure for air pollution, establishing clear policies, initiating measurement and disclosure, and engaging with supply chains. Recommendations for investors include recognising air pollution as a material ESG issue in investment policy, incorporating air pollution business risks into investment strategies, and investing in innovative technologies.

Existing regulations across the world were examined, including the UK’s Environmental Bill, the EU’s Corporate Sustainability Reporting Directive, and India’s Business Responsibility and Sustainability Reporting (BRSR) requirements. Additionally, upcoming sustainability reporting standards such as the International Sustainability Standards Board (ISSB) are discussed.

Finally, co-operation between investors, companies, industry groups and governments is suggested, emphasising the importance of collective action to address the systemic costs of air pollution. Overall, this report highlights the importance of addressing air pollution as a material business risk, requiring decisive and constructive co-operation between investors and companies, and a call to action to improve air quality for all.