Client Case Study
Integrated Governance - A new model of governance for sustainability
United Nations Environment Programme Finance Initiative
(UNEP FI) is a partnership with the financial sector, aiming to bring about systemic change in finance for a sustainable world.
In line with UNEP FI's focus on sustainable finance, the initiative sought to explore the topic of 'Integrating Sustainability into Corporate Governance'.
The client sought to better understand how corporate governance interacts with sustainability, and whether it is possible to identify governance indicators that are particularly effective in promoting a durable culture of sustainability within firms.
Our position at the forefront of research on sustainable finance signalled an opportunity to produce fresh insights with implementable recommendations. We proposed a framework for integrating sustainability issues into corporate governance, based on the concept of materiality.
Our extensive research was consolidated in a report which proposes a model of Integrated Governance, that puts sustainability at the heart of governance and corporate boards’ strategic agendas. The Integrated Governance model is the system by which companies are directed and controlled, in which sustainability is integrated in a way that ensures value creation for the company and beneficial results for all stakeholders in the long term. The report illustrates the inadequacies of current corporate governance practices and outlines three phases that help companies move towards Integrated Governance, leading to a holistic integration of sustainability in their corporate strategies.