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  • Studio Paci

The integration of 'sustainable success' into the ESG governance of listed companies

"Sustainable success" is at the heart of corporate governance according to DLA Piper.

The trend is that listed companies are integrating sustainability and ESG criteria to guide long-term decisions.

However, the concrete application of these criteria in business and decision-making processes is still limited.


Guiding Principle of the New Corporate Governance Code:

The new Corporate Governance Code introduced "sustainable success" as a guiding principle for company objectives.

Now, sustainability is no longer limited to environmental impacts, but also incorporates social issues, including stakeholder participation and workers' rights.


Remuneration Policy and ESG Objectives:

The Code promotes a remuneration policy linked to ESG objectives, seeking to balance short-term returns with the creation of long-term value.

To ensure this, the Code encourages integrating sustainability into the internal control and risk management system.


Integrating Sustainability into Corporate Strategy:

Efforts are still needed to fully integrate sustainability and ESG criteria into corporate strategy.

Two possible avenues, according to DLA Piper, include the inclusion of sustainable development as a corporate purpose, as in benefit corporations, or the integration of sustainability into directors' duties.


Sustainability Committees:

Some companies have established ad hoc sustainability committees, which have proven effective due to the specialization of committee members.

This approach is appreciated by investment funds, which prefer companies with clear ESG governance.


In conclusion, despite the emphasis placed on sustainability, few companies have truly implemented a structurally sustainable approach.

There is therefore a need to continue to enhance sustainability in Corporate Governance decisions.

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