Over the past few years, the term ESG, short for environmental, social and governance, has become a familiar part of business conversations. It is often used to describe how organisations manage their impact on the environment, their people and communities and the way they are governed.

When people think about ESG, however, their minds usually go straight to the environmental and social aspects. They think of renewable energy, recycling, employee wellbeing, volunteering or community programmes. These initiatives are visible. They are easy to understand and often become the stories organisations are most eager to share.

The third pillar, governance, is rarely discussed with the same enthusiasm.

There are no ribbon-cutting ceremonies for strong internal controls or ethical decision-making. Board oversight, risk management and transparent reporting rarely make headlines. Yet behind every credible sustainability commitment is a governance framework that ensures it is more than just a promise.

Every successful organisation has visionary leaders, but no leader can oversee every decision, every risk or every process. As businesses grow, responsibility is shared across teams. Governance provides the framework that keeps everyone aligned, ensuring decisions are guided by clear accountability and ethical standards.

This is why governance is often described as the foundation of ESG. An organisation may announce ambitious climate targets, launch community initiatives or introduce new programmes for employees. But who approves the strategy? Who measures progress? Who ensures the data is accurate? Who holds the organisation accountable if commitments are not met? Those are all questions of governance.

Ironically, governance is most noticeable when it is absent. Weak oversight can lead to ethical failures, poor decision-making, compliance breaches or sustainability commitments that never move beyond good intentions. Strong governance, on the other hand, creates consistency, manages risk and builds trust among employees, customers, investors and regulators.

At Galadari Brothers, governance underpins responsible decision-making across the organisation. Board-level oversight, enterprise risk management, independent audit functions and confidential whistleblower mechanisms help reinforce accountability and integrity across the company. As the business environment continues to evolve, the company regularly strengthens its governance frameworks to address emerging risks, including cybersecurity, data privacy, technological transformation and regulatory compliance.

Environmental and social initiatives may be the most visible parts of ESG, but governance is often the reason they succeed. It may not attract the same attention, but it provides the accountability that turns commitments into measurable progress and helps organisations create value that lasts.

• Ventures

Written by

Sayali Singhi Contributor

Sayali Singhi is the Group Head of Project Planning at Galadari Brothers, where she helps shape group-wide ESG and CSR initiatives. She is a CFA charter holder and a certified sustainability professional.