The climate and environmental crisis have made it undeniable that
business and sustainability are interrelated. Corporate governance is
one of the most powerful tools to implement sustainable targets for
companies. European initiatives such as CSRD (Corporate Sustainability
Reporting Directive), CSDDD (Corporate Sustainability Due Diligence
Directive), and ESRS (European Sustainability Reporting Standards)
strongly depend on good corporate governance. A better understanding of
the corporate governance systems across Europe will help ensure the
effective implementation of sustainability-related legislation.
The paper looks into the following:
- board of directors: structure, composition and legal framework
- board remuneration and evaluation
- internal controls and transparency
- shareholders’ and stakeholders’ roles