Companies are under intense pressure to improve their environmental, social, and governance (ESG) performance. To date, the lion’s share of management scrutiny and investor activism has focused on wholly-owned or controlled entities.
Ensure that Your Joint Ventures Meet Your ESG Goals
Few companies report the impact of operations they don’t fully control — but scrutiny on these investments is growing.
June 03, 2022
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Summary.
Even as companies are becoming more transparent about environmental, social, and governance practices, most of them provide little information about the impact of joint ventures. Many large companies are involved in numerous JVs, so the cumulative impact of these activities is significant. Companies can use three levers — partner due diligence, contractual terms, and governance — to work with partners to elevate ESG practices.