The “G” in ESG stands for Governance. Governance can be defined in several ways, depending on the context. For some entities, Governance can be defined as the rules and regulations that a company or business must adhere to. A good example of this could be how local governments conform to rules from larger bodies, such as the European Union, strictly following policies and governing with these laws and rules in mind. However, for the most part, Governance in ESG refers to something entirely different.