As planet earth retreated into phase one lockdown last year, the global consulting firm Bain, very presciently pronounced “Covid-19 was a dress rehearsal for climate change”. While this remains true and will be an enduring headline, 2020 will also be remembered as the year that the Environmental, Social and Governance (or ESG) agenda took center stage in boardrooms and businesses around the world.
Environmental, Social and Governance (ESG) factors are being used increasingly by the investor and finance communities to assess the sustainability and risk profile of companies.
There is increasing pressure on organizations to demonstrate and display their social credentials, underscored in 2020 when the pandemic highlighted both known and unknown social inequalities.
Strong company governance structures drive value-creation
Governance covers a range of matters including tax strategy, corporate risk management, executive compensation, donations and political lobbying, corruption and disclosure.