What does governance mean in ESG?

ESG stands for “environmental, social, governance”. ESG is when you are looking at the environment and how it might be affected by what people do. It also takes into account how people are treated in their workplace.

ESG looks at lots of different things to see if they are good or not. These things include the environment, how people work together in a company, and also if they use renewable energy or not.

What does governance mean in ESG?

Governance is a big word in the ESG world. It is often used to describe how well a company or organisation can respond and react to changes that might happen in the future.

When we talk about governance, we are usually talking about how well they can plan for and execute on courses of action towards their long-term vision and mission.

The ESG rating system looks at several different aspects of Governance including: Risk Management, Strategy Development, Accountability Mechanisms, Board Structure & Oversight Processes, Leadership Structure & Performance Management Systems; to name just a few things. Together these are all evaluated by ESG raters so that you know if your company has good governance!

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