Environmental, Social, and Governance Influence on Corporate Governance: A Comprehensive Analysis

Abstract

The importance of sustainability practises has increased for firms and investors in light of the rapidly shifting investment and climate change landscapes. The UN has stressed the need for impact and ethical investing as well as sustainable investing with its 17 ambitious development objectives. Because they focus on a company's non-financial issues, such social and environmental concerns, ESG funds have become more well-known. The study examines the potential synergies between corporate governance principles and ESG elements to enhance shareholder value, performance, risk management, and organisational resilience. It also examines the ways in which company type, firm size, and the regulatory environment influence relationships between corporate governance, ESG practises, and financial performance. The research provides valuable insights into the benefits of combining ESG and corporate governance, with a focus on improving financial performance and organisational resilience. It also takes regulatory environment and industry-specific considerations into account.