ESG is most trending topic now.
An interesting working paper I recently read is “ESG: From Process to Product” published by Harvard Business School.
The three pillars of ESG framework include
1. Environmental
2. Social
3. Governance
Most of the discussion happening around environmental issues and its assessment. It is indeed an important issue however the third pillar that is Governance is almost neglected.
Corporate governance has emerged as a serious issue specially for start-ups. Weak oversight of board of directors, negligence from regulators to ensure compliance with CG standards/regulation and lack of interest from start-up companies are few prominent risks.
It is important putting more efforts to understand the risks associated with this pillar as well.
Written by: Muhammad Rashid, Co-Founder & CEO
