What does an ESG Governance Framework define?

An ESG Governance Framework is integral to understanding how organizations approach and manage their environmental, social, and governance responsibilities. By defining a structure for ESG oversight and accountability, the framework outlines the roles, responsibilities, and processes that guide an organization's commitment to sustainability and ethical practices.

This framework ensures that there are designated entities or individuals responsible for ESG issues, thus creating a systematic approach to evaluating and integrating these considerations into the overall governance structure. It addresses how decisions related to sustainability and social impact are made and monitored, emphasizing transparency and accountability at every level of the organization.

The focus on governance within this framework also highlights how organizations can align their operations with stakeholder expectations and regulatory requirements, which is crucial for long-term sustainability and success. By having clear governance structures, organizations can better assess their performance in ESG areas and make informed decisions that balance profit with social responsibility.