ABSTRACT
The best practice governance model is a way of ensuring there's a framework that delivers sustainability. Fundamentally, governance is about sustainability. It is about this balance between profitable growth and wealth creation, environmental impact and one's impact on society. The board needs to understand global changes and how they affect the company's long-term performance and survival. It needs to be exposed to external views, criticism and observations which challenge the status quo. Setting up sustainability governance structures, however, will not be an easy endeavour. The management team in turn needs to be prepared to answer those questions and explain how they impact long-term strategic planning. Crossing business impacts with the perception of stakeholders within a materiality matrix allows organizations to prioritize environmental, social and governance (ESG) issues, which have a real impact on a company's business.
