The "G" in ESG
Governance in ESG (Environmental, Social, Governance) refers to the set of principles, practices, and processes by which a company is directed and controlled. It encompasses the rules, structures, and relationships that determine how decisions are made, how authority is exercised, and how accountability is ensured within an organisation. Good governance in ESG entails transparent and responsible management, ethical conduct, accountability to shareholders, and a commitment to upholding the interests of all stakeholders, contributing to the long-term sustainability and reputation of the company.
Importance of Governance
Implementation
The “governance” aspect of ESG for SMEs focuses on how the business is run. It covers things like who makes decisions, how they’re paid, and ensuring they make choices openly and fairly. This helps small businesses build trust and manage their operations responsibly.
Good governance is crucial in ESG investing because it ensures that companies are run in an accountable and ethical manner. It helps reduce the risk of fraud, conflicts of interest, and mismanagement, which can impact long-term shareholder value.
An essential governance practice for SMEs in ESG is establishing a clear policy for ethical behavior and compliance. This includes setting standards for integrity and transparency in all business operations, which helps build trust with customers, investors, and the community.
What We Offer
We specialise in ESG reporting and recommendations for small and medium-sized companies