CORPORATE GOVERNANCE
ESG has become an essential framework for sustainability strategy . The environmental element is often the most covered , with companies managing carbon footprint , emissions , climate change initiatives , resource management and impact on biodiversity among other things .
The social side involves a company ’ s relationships with employees , suppliers , customers and communities , including DE & I initiatives , human rights , community impact and health and safety .
Corporate governance arguably goes under the radar , but senior executives say that should not be the case .
So how is it defined ? Corporate governance is the internal system of practices , controls and procedures a company adopts to govern itself , make effective decisions , comply with the law and meet the needs of external stakeholders .
“ Corporate governance looks at the management and oversight of companies ,” explains Amy Brachio , Global Vice Chair of Sustainability at EY . “ Businesses have the potential to significantly accelerate the shift towards a climate-neutral and sustainable economy , but to fulfil this potential , they must adopt governance measures that reflect a deep understanding of their actions ’ repercussions on the global landscape .”
“ IT ’ S CRITICAL THAT SUSTAINABILITY IS APPROACHED THROUGH A LENS OF RISK MANAGEMENT ”
AMY BRACHIO GLOBAL VICE CHAIR , SUSTAINABILITY , EY
64 June 2024