With the threat of climate change and the depletion of resources increasing, investors must incorporate sustainability concerns into their investment choices. These issues often represent external factors, such as the impact on company operations and revenue, which are not entirely influenced by market mechanisms.
There has recently been an increasing emphasis on consumer protection efforts. The massive growth in damages lawsuits means that consumer protection is a core consideration for those seeking to limit and review corporate risk.
Corporate governance covers the area of inquiry into the rights and responsibilities of a company's board of directors, management, shareholders and the various stakeholders of the company. The internal procedures and control systems that make up the company's management structure are the valuation of the company's equity.