ABSTRACT

Chapter 3 presents a basic corporate governance framework, which puts the board of directors in the centre surrounded by supporting committees, such as audit, risk, nomination, and remuneration, among others. Members of the board of directors are elected by the shareholders and delegate management to the executive team. Based on the basic corporate governance framework, we discuss points of intervention regarding sustainability issues: the company might recruit a board member with sustainability expertise, have a skilled board or make sustainability part of existing committees. One source of these changes are activist shareholders who push for more sustainability in the governance framework of publicly listed companies.