According to this article I was reading in Sustainability Magazine, between 2018-2021 alone, inflows into global sustainability funds rose from $5 billion to nearly $70 billion. But it highlighted that despite this focus there is still not enough attention paid to the Governance element in ESG.
When we look at any Greenwashing articles recently we see a lot of unfounded or substantiated claims. Many times we see lacking Governance structure that underpins a strong Sustainability strategy.
It is critical when we think of the upcoming reporting needs under the CSR Directive that companies start now to ensure they have a clear governance model in place to help with their reporting needs.
Governance and transparency are intrinsically linked. Without transparency and accountability, an organisation cannot determine the right course of action to meet ESG goals or verify any claim to be a good corporate citizen. In other words, the ‘G’ holds the key to the realisation of the ‘E’ and the ‘S’.