Governance elements compose the third pillar of ESG. The governance pillar incorporates topics such as board composition, executive compensation, transparency, ethics, and risk management. It is generally regarded as a reflection of how a company is managed.
6.1 Governance Factors and Their Impacts
Effective governance practices help establish a strong corporate culture, foster trust among stakeholders, mitigate risk, and inform decision-making. The “G” pillar reflects the internal management ...
