Governance
The governance aspect of ESG focuses on a business’ practices, leadership and structure. It measures how a business operates in terms of audits, board diversity, internal controls and shareholder rights. This aspect includes the following topics:
- bribery and corruption;
- executive pay;
- board independence;
- business ethics;
- board composition and audit committee diversity and structure;
- financial system instability;
- tax transparency;
- political contributions;
- whistleblowing;
- conflicts of interest;
- anti-money laundering; and
- anti-competitive practice.