Herbalife’s Board of Directors announced the formation of an ESG committee (environmental, social and governance). According to the statement by the company, this decision was made due to the importance of leading in the areas of sustainable, socially responsible and ethical practices.
John Agwunobi, Chairman and CEO of Herbalife said, “The formation of this new committee underscores and reaffirms Herbalife Nutrition’s commitment to continuing to improve communities around the world as a leading global corporate citizen.”
The Committee will be chaired by Herbalife’s board member, Michael Montelongo. He said, “I am excited about working with the management team as the Company continues to lead in this critical area. We understand the great responsibility that comes with being a leader, and this new committee will provide important oversight on the company’s overall strategy and management of ESG matters.”
“Environmental, social and governance” represent the three important factors in measuring the sustainability and social impact of a company. Socially conscious investors use ESG criteria in screening their potential investments. ESG is gaining more and more popularity as the number of socially conscious investors, both individual and institutional, increase.