Environment, Social and Governance (ESG)

Corporate governance ¹ is about corporations and business enterprises, and the way in which they are managed, governed and held accountable. There have been significant developments in the way that corporations are viewed by society, their ‘social licence’ to operate, ^{2 , 3} and their reactions to their environmental and social responsibilities. The term ESG (environment, social and governance) has gained prominence in recent years as a way to understand and evaluate a company’s impact and performance beyond the financial bottom-line measure. ⁴ ‘Responsible investing’ by banks, investors and asset managers is now rapidly growing globally to significant proportions. ⁵