Whitepaper

Corporate Governance: Cross-Shareholding and It's Impact on ESG Ratings

ESG Services

An essential facet of business operations, corporate governance has increasingly come under scrutiny for its pivotal role in shaping corporate behavior and performance. Among the various governance structures, cross-shareholding is particularly noteworthy due to its complexity and prevalent adoption, especially in economies such as Japan and South Korea. Cross-shareholding substantially impacts corporate governance, thereby influencing a company’s ESG performance. The significance of cross-shareholding transcends conventional governance issues, influencing companies’ ESG ratings—a metric that investors are progressively employing to assess corporate sustainability and ethical practices.

Key Takeaways:

  • Cross-shareholding entails companies owning shares in each other, thus forming a web of mutual ownership. 
  • Cross-shareholding is a double-edged sword in corporate governance and ESG ratings as it can enhance stability and foster collaboration, yet it also brings considerable challenges to transparency, accountability, and the rights of minority shareholders. 
  • By focusing on these areas, companies can better align their governance practices with ESG standards, ultimately promoting more sustainable and ethical business operations.

To know more...


Related Topics

Bio Diversity Whitepaper by SG Analytics

Whitepapers

Board Diversity and Its Influence on ESG Outcomes

In the contemporary corporate landscape, ESG factors have become integral to evaluating a company’s long-term sustainability and ethical impact. With...

esg reporting services

Whitepapers

Decoding ISSB

The International Sustainability Standards Board, or ISSB, aims to integrate various existing sustainability frameworks to create a unified set of standards...

Concept of Biodiversity

Whitepapers

Exploring the Concept of Biodiversity

Biodiversity is critical for maintaining and preserving ecological stability and providing a wide range of environmental services. With the global decline...

VIEW MORE

We bring comprehensive data driven insights to everyone, everywhere