What is the "G" in ESG?

Governance is often the most silent pillar of ESG — but it is also the one that underpins all the others. The “G” in ESG represents the mechanisms, processes, and structures that ensure the company acts with integrity, responsibility, and effectiveness. And in SMEs, where proximity and informality are frequent, good governance can be the distinguishing factor between a company with a future and a vulnerable one.

Transparency and trust

Adopting good governance practices — such as formalising processes, clearly defining roles and responsibilities, separating operational and control functions, and communicating transparently with stakeholders — builds trust. Trust from employees, partners, investors, and the market.

In an era where corporate reputation can be shaken in seconds and where ESG criteria are increasingly required in public tenders, funding applications, and due diligence processes, governance has ceased to be a luxury. It has become a minimum requirement.

More robust decision-making

Governance is not synonymous with bureaucracy. Quite the opposite: it is a way to ensure more informed, ethical, and strategic decisions. A well-structured code of conduct, a risk management policy, an internal control system proportional to the company's size — all of this allows for anticipating problems, avoiding conflicts, and keeping the organisation aligned with its values and objectives.

Preparing the company for growth

Many SMEs still operate with informal and poorly documented practices. But as they grow, the absence of governance processes becomes a hindrance. Professionalising management is a condition for growing solidly and attracting institutional partners, whether for new projects, investments, or internationalisation.

Yunit's role

We support companies in structuring their governance effectively and proportionately. From sustainability reporting to support in applications that value integrity criteria — such as programmes funded by Portugal 2030 —, we stand by SMEs on this journey.

Because the “G” in ESG is what ensures that good intentions are transformed into good practices — systematically, measurably, and sustainably. And that is what distinguishes well-managed companies from merely well-intentioned ones.