ESG
the highest standards of ESG impact . By taking the B Corp test , businesses are able to grasp how sustainable their operations are , while identifying areas for improvement .
Technology is also another great way to improve governance , as it can be used to gather , analyse and report higher quality and more efficient data on a variety of metrics , including carbon footprint accounting , financial statements , risk management and compliance records .
“ If a key metric of good governance is transparency , then using open-source technology is a great-but-underutilised tool for improving governance – both within an organisation and the corporate sector more broadly ,” Möller says . “ Making information publicly available so that it can be reviewed and audited by anyone will increase transparency and accountability .
“ This helps corporates to compare themselves to others and enables them to strive for industry best practices . While competition is often the name of the game , collaboration is key to advancing standards as knowledge sharing has the power to improve everyone ’ s performance . Open source technology also helps address the barrier of cost , thereby enabling all sizes to improve their governance by reporting on many important but often overlooked factors given resource constraints .”
“ Proper due diligence on suppliers and third-parties should be taken seriously ”
MARTEN MÖLLER ESG LEAD , ALGBRA
Understanding the risks associated with governance To effectively manage corporate governance risks , companies need to acknowledge the presence of ESG risks across their organisation and supply chain . It is crucial for companies to proactively address these risks and implement mitigation measures that consider the interests of all stakeholders , rather than solely focusing
54 July 2023