21st Century governance integrates what we know about impact. It starts with strategic commitment to contribute positively to sustainable outcomes and asks what needs to happen differently as a result? It incorporates effective stewardship across dimensions of decision-making, expectation setting and activity that directs attention and resources to acting to avoid harm and doing more that benefits stakeholders and contributes solutions.
Translating strategic commitments into concrete actions, and holding an organisation to account over the short, medium and long-term, is one of the most powerful roles of a board. Applying 21st Century Governance makes this role even more vital – and subject to greater scrutiny as corporations and financial institutions seek to distinguish themselves by their social and environmental contributions to a more sustainable and inclusive society.
In a corporate context this brings impact and sustainability into decision-making across a Board’s contributions to strategy, culture, people and remuneration, investment and divestiture, performance, accountability, compliance, reporting and risk management.
In an investment context, this brings impact and sustainability into play across the investment cycle, from investment thesis to management and measurement and from product to fund and firm.
In a policy context this brings impact into policy priorities, ecosystem development, value for money, problem definition and the range of policy tools and options and their governance.