Corporate governance is a crucial component of ESG and is essential in achieving long-term sustainability. A strong governance structure, clear policies, and effective systems and processes can help an organization mitigate ESG risks, reduce its environmental footprint, and operate in a manner that is socially responsible. Good corporate governance can also improve a company’s reputation, foster trust among stakeholders, and help attract and retain employees, customers and investors.
The Governance Pillar within the BRM seeks to understand how an organization identifies, prevents, mitigates, and remediates environmental, social, and corporate governance risks through its corporate structures, systems, and processes.
The questions in this Pillar are organized into three main sections: