When we talk about ESG – environmental, social and governance – investing, we often start with a discussion of the ‘G’ or governance. If a company has good leadership that supports policies ESG investors care about, it becomes easier to articulate why that company should be held in an ESG portfolio. Simply put, if a company does not have strong governance, it will struggle to take care of all its stakeholders (employees, customers, shareholders, and supply chain) and have a positive effect on the environment. To better understand how Sage evaluates corporate governance, we have created “the 5 C’s” framework – compensation, composition, competency, clarity, and consistency.

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