Of the three major elements in ESG – environmental, social and governance – it’s the “G” that often gets the least attention. However, as investors and businesses continue to adopt strategies that incorporates ESG, the governance issue is getting more focus.
The concerns addressed by initiatives in the environmental and social areas, including developing sustainable operations and promoting gender and racial diversity in the workforce, don’t do much good without sound, ESG-focused corporate governance.
As pointed out by the Harvard Business Review, most of the policy debate around ESG surrounds the “E” and the “S.” That will likely change as more companies focus on transitioning to governance that focuses on the long-term and supports the environmental and social goals that drive ESG.
