Understanding the ‘G’ in ESG

Watch this video to learn why good corporate governance, the final pillar in ESG, is a vital component of any company's lasting success.

06/07/2021
UnderstandingTheGinESG

Authors

Sustainable Investment Team

Find out how you can make an impact with sustainable investing.

The governance 'G' pillar in ESG is about assessing how well a company is run and ensuring that it acts in the best interest of its stakeholders.

Unethical practices like clientelism, conflicts of interest or improper business practices can have a devastating impact on a company and its shareholders.

Good governance has a strong positive impact

Factors such as transparency of corporate disclosures, respect for all stakeholders and fair executive compensation translate to a lower cost of capital, lower volatility and overall competitive advantage for a company.

Investing in sustainably run companies with strong governance practices means no nasty surprises, which bodes well for you as an investor.

Find out more about:

Watch the rest of our 'Sustainable Investing: A Beginner's Guide' series here. 

Authors

Sustainable Investment Team

Topics

In Focus
Sustainability
Climate Change
ESG
Environmental
Governance
Social
Invest Savvy
How to
Sustainable Development Goals
2021
Global
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