Imagine you are CFO of a $1.0 Billion company (sales). Your annual net income is...

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Finance

Imagine you are CFO of a $1.0 Billion company (sales). Your annual net income is $100 million. Your return on equity is 12%. The CEO and the Board has stated they intend to increase ROE to 15%. However, some activist investors have demanded that the Company increase its ESG score. The Company manufactures silicon computer chips used in car manufacturing.

Given your role as CFO and responsibility to all shareholders, what would you recommend to the Board to do, if anything, to increase the Company's ESG score. In 5 to 10 sentences:

explain what an ESG score is, how is it measured, what do you recommend the Company to do to increase its ESG score, and, discuss the expected impact on ROE of these recommendations. To obtain maximum points, you must demonstrate a balance of shareholder interests and stakeholder interests. Specific ideas / recommendations are expected.

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