A company reports on its performance in relation to environmental, social and governance (ESG) factors. Which of these is a governance factor?
Answer and explanation
Correct answer: A. Board diversity and the independence of directors
- Step 1: ESG stands for environmental, social and governance.
- Step 2: Board structure, independence and diversity relate to how the company is governed.
- Step 3: The remaining examples are environmental or social.
Answer
Board diversity and the independence of directors.
Why not the others: This is an environmental factor. Health and safety record of employees: This is a social factor. Use of recycled materials in production: This is an environmental factor.
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