ESG

Many ESG systems (ESG stands for sustainable corporate management in the areas of Environment, Social and Governance) see this concentration of power within a family as negative and high-risk from a corporate governance perspective. Examples of the corresponding ESG data points are “Does the largest shareholder have the right of veto or hold so-called ‘golden shares’?” or “Is the CEO a member of the board?”. However, in this context it is important to once again highlight the fact that family business entrepreneurs are generally eager to make decisions that benefit future generations. These are long-term decisions and sustainable decisions. As a result, sustainability is virtually “built in” to family businesses. 

CONREN Services - Advice for family businesses, family assets & investments in shares of listed family businesses