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. In a regulated environment many businesses are extremely developed in their governance structures, however poor performance in governance exposes a business to several categories of risk. Governance issues for consideration include:
- Business Ethics
- Competitive Behaviour
- Management of the Legal & Regulatory Environment
- Critical Incident Risk Management
- Systemic Risk Management