Board
Board-led oversight
Boards and committees own ESG risk appetite, disclosure, and escalation paths.
The G in ESG:Governancebasics
Policies, accountability, and transparent decisions.
Governance in ESG covers how leaders set direction, record decisions, and hold teams accountable. This guide explains ESG governance factors, shows why they matter, and shares steps to keep oversight practical.
Governance in ESG — what this page covers:
What does “governance in ESG” cover?
ESG governance describes the structures, policies, and oversight that keep environmental and social promises measurable, ethical, and auditable.
3 lines
Controls
Operational owners, risk/compliance teams, and auditors collaborate to monitor controls.
Yearly
Review cadence
Policies, charters, and incentives should refresh yearly as regulations evolve.
Core ESG governance factors to align
Leadership accountability. Assign ESG sponsors at board and executive level with clear mandate and reporting duties.
Policies and controls. Document decision rules, approval flows, and scenario triggers that keep ESG claims accurate.
Data, reporting, and assurance. Define how evidence is captured, tested, and audited before it appears in disclosures.
Ethics and incentives. Align codes of conduct, whistleblowing channels, and remuneration levers with ESG goals.
WHY IT MATTERS
Why governance unlocks ESG value
Clarity and speed. Decision logs, delegations, and sign-offs prevent ESG from stalling when new risks emerge.
Compliance confidence. Regulators and auditors trust programs that show a traceable chain from objective to approval.
Cross-functional action. Governance gives finance, operations, sustainability, and IT the same roadmap.
Credible storytelling. Investors and communities believe ESG progress when governance keeps the data honest.
OPERATIONALISING GOVERNANCE
How governance connects environmental and social work
- Define decision rights. Clarify who sets targets, who funds work, and who signs disclosures across E, S, and G topics.
- Link risk and opportunity. Tie ESG scenarios to enterprise risk registers and strategic planning cycles.
- Standardise documentation. Use templates for board papers, RunSustainably objective briefs, and control testing results.
- Close assurance loops. Schedule internal audits, third-party assurance, and management responses before publishing data.
MEASUREMENT
Tracking ESG governance performance
- Policy refresh progress. Monitor which policies were reviewed, updated, or need escalation.
- Issue escalation timing. Track how quickly ESG issues move from detection to board visibility.
- Training + certification. Record completion of governance training, committee charters, and new member onboarding.
- Disclosure readiness. Use RunSustainably to flag which data sets and approvals are complete before report season.
Governance actions to take this quarter
Refresh ESG charters. Update committee or working group mandates with clear KPIs and decision scopes.
Map approvals end-to-end. Document how an ESG idea becomes a funded program with approvals, controls, and reporting.
Integrate governance into RunSustainably. Log decisions, approvals, and audit notes in the same workspace as objectives.
GLOSSARY SNAPSHOT
Governance glossary snapshot
Risk appetite statement. The agreed boundary for ESG-related risk-taking, set by the board.
Three lines of defence. A model that splits responsibilities between operations, oversight, and assurance.
Disclosure committee. A cross-functional group that signs off on ESG and financial filings.
FAQS
The G in ESG: Governance basics FAQs
What are ESG governance factors?
They include leadership accountability, decision-making frameworks, data controls, ethics, and incentive structures.
Do smaller organisations need formal governance?
Yes—simple charters, registers, and approval flows keep ESG plans credible even with lean teams.
How does governance interact with E and S pillars?
Governance sets the rules and oversight that keep environmental and social initiatives funded, measured, and reported consistently.
Can governance evolve over time?
It should. Revisit mandates every year or when regulations, risk appetite, or leadership priorities change.
Drova RunSustainably unites objectives, approvals, and reporting so these ESG topics stay actionable.
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