It is widely believed that the most important pillar of the “ESG” equation is the “G” (Governance) pillar. A well-defined sustainability governance framework is crucial to ensure the strong and effective integration, implementation, and monitoring of an organisation’s sustainability strategy and overall performance.

A robust ESG governance structure benefits a financial institution in safeguarding the effective integration of ESG factors at all management levels and functions in alignment with national and international ESG/Sustainability frameworks and initiatives, while serving the organization’s purpose and vision, as well as meeting all stakeholders’ interests.

For this reason, FIs are currently establishing a holistic ESG governance structure within their organizations and integrating ESG considerations in their governance practices, internal policies, and procedures.