The dynamic change sweeping through Environmental, Social, and
Governance (ESG) means that even on governance – a
well-established aspect of corporate life – a new era is
emerging. New regulations require higher standards of governance
for almost all companies, not just those listed on public
markets.
While we often see new regulatory burdens, ESG is increasingly
'shining a light' on the governance 'trifactor' of
transparency, monitoring, and communication.
Strategic forward planning is becoming increasingly important. The
incoming CSRD changes in
Europe are a reminder that re-engineering governance should be
high on the corporate agenda.
Covering new ground
As an example of the new governance context, CSRD introduces
more detailed reporting requirements on the environmental impact
and societal and human rights from 2024 onwards. Sustainability
reporting appears to have been put on an equal footing with
financial reports, with a focus on consistency and
