Reed Smith, Eurasia Group: Governance is at “the heart” of ESG

World Oil Staff May 11, 2023

(WO) — Global law firm Reed Smith and geopolitical risk firm Eurasia Group have co-published a report – “Governance - at the heart of ESG” - exploring why organizations must have robust governance strategies and processes in place in order to take a strong leadership position on Environmental, Social and Governance (ESG) issues.

As the report explores, the stand-out consideration within the awkward ESG troika is governance (G). ‘E’ and ‘S’ create both risks and opportunities for organizations and those that invest in, or work for, them, while ‘G’ issues get to the heart of how opportunities are identified and risks are managed.

With organizations continuing to grapple with a myriad of wide-ranging, complex, and intertwined ESG issues, this report is timed to help them identify the key issues at play and recognize the importance of preparing new governance structures required to deal with ever-changing environmental and social trends.

Claude Brown, partner at Reed Smith and contributing author to the report, said, “Strong governance is the linchpin of an coherent and coordinated ESG strategy. It ensures that organizations’ compliance efforts and reporting systems are robust, transparent and ethical while satisfying stakeholders’ expectations for accountability. It is no longer just about generating profit for shareholders at all costs.”

“Corporate environmental and social policies are no longer ‘nice-to-have’, but are necessary to address material impacts on business,” said Shari Friedman, managing director of climate and sustainability at Eurasia Group. “This requires internal structures that change what good governance looks like.”

Reed Smith and Eurasia Group’s ‘Governance - at the heart of ESG’ report can be downloaded for free on the firm’s website.

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