Corporate governance refers to the running of a company. The Governance criteria within ESG largely focuses on CEO pay, political contributions and lobbying, and the diversity and political activism of its board as a gauge of whether or not a company is a good financial investment.

It nearly impossible to separate the ever-growing corporate board requirements from corporate operations. As a board increasingly focuses on woke political activism, it becomes increasingly difficult to attend to the core functions of the company. For example, Twitter might be scored favorably on ESG-metrics because its current board and CEO govern the company like a partisan political operation, but the company consistently underperforms, leaving it vulnerable to a takeover. In most cases, prioritizing ESG governance criteria and putting politics over profits, leads to lower shareholder value.