Governance: The "G" in ESG

As an asset manager with decades of experience looking at the totality of companies, Miller/Howard has long believed that analysis of environmental, social, and governance (ESG) factors, when combined with robust financial analysis, provides a more comprehensive picture of a company’s risks and opportunities. We often talk about the environmental and social angles, yet the governance aspect often goes unexplained. Understanding a company’s governance—and demanding transparency—is critical for any investor interested in long-term profitability, responsible use of capital (financial, human, natural), and the company’s risk profile.