How do ESG practices affect corporate performance?

More specifically how does the G, or Governance aspect of ESG affect corporate performance? This focuses on how organizations run themselves, including their boardroom, C-level structure, and company-wide decision-making matrices and processes. An important part of corporate governance is how a company’s boardroom can oversee its environmental and social practices, risks, and opportunities.

The only way to ensure that your organization’s boardroom is equipped to maximize ESG opportunities and minimize risk is to ensure board diversity and varied skills are present across your board. Board diversity is generally an indicator of good governance and is linked with better financial performance. A global survey by BCG of over 1,700 companies showed that companies with above-average diversity rates in management positions showed 19% higher innovation revenue.

Across the world, different reporting standards, disclosures, and frameworks have started to come into place around board diversity and skills for organizations to keep track of. Download the guide to stay on top of board diversity and skills requirements for your organization.