Environmental, social and governance – ESG – is a term that sums up real-world issues that interact with investment decisions and performance. As such, ESG considerations are an important element of our investment approach.
Here, we focus on governance issues. The UKRF believe there is compelling evidence that sustainable business practices lead to better risk-adjusted returns and outcomes in the long-term. Some of the most pressing Governance issues in the spotlight are the policymaking of Governments issuing debt; the purpose of corporations, the role and makeup of their boards of directors including the compensation of their executives.
Get an at-a-glance flavour of this topic with the snapshot, then read further from our range of articles and case studies below.
Snapshot
Some of the main issues that affect good governance and best practice…
Diversity, equality and inclusion
Workplace culture
Financial crime and corruption
Reporting and disclosure
Shareholder rights
When discussing ESG issues, governance embraces the way a business operates. This can often mean best practice in financial terms – from accounting standards through to its pay structure.
But it also includes the organisation’s culture and values, how it conducts its business, presents itself to the industry and treats its employees.
We actively seek to invest in companies observing best practice governance, as they are more likely to succeed – and provide a good return on investment – in the long term.
This wordcloud includes terms that are important to good governance.
Would you make any of the words larger or smaller? What words would you add?
Explore this topic
Explore more on this topic using the resources below:
Article
Collaboration: building networks for faster action
ESG issues have global impact, and organisations need to work together worldwide to address them effectively. Learn more about how the UKRF collaborates here.
Case Study
A day at EOS
EOS at Federated Hermes (EOS) is a world-leading stewardship service provider, advising on more than $1.5 trillion in assets to deliver corporate engagement and proxy voting services.
