E is for...
Environmental, social, and governance (ESG) factors have become essential considerations for organisations and their boards, regardless of corporate structure or ownership. While ESG originated with publicly traded firms, its principles have growing implications for private companies and not-for-profits as well. ESG refers to three central non-financial factors when evaluating the broader impacts of an organisation’s operations beyond purely financial returns. These include: Environmental - How the organisation affects the natural environment through impacts like resource usage, emissions, waste, conservation, and stewardship.
Board Evaluation is an important process that helps to assess the performance and effectiveness of an organisation’s boards of directors. The board evaluation process is essential in determining whether the board is discharging its roles and responsibilities effectively, and whether it is working as an effective team. A well designed evaluation will be comprehensive and will help determine if the systems, structures and processes supporting the board are also effective.