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Environmental, Social and Governance factors (ESG) may bring to mind feel-good stories about sustainability, diversity and integrity, but for credit unions, ESG goes far beyond stories. The values related to ESG align with a credit union’s mission of service to members, the community it serves, its duty to employees and interactions with other stakeholders.

ESG factors are also important strategic financial drivers, which is why investors in public companies are paying a lot of attention to them. Although specific regulatory reporting on ESG measures is generally not required for credit unions, many are surely in your strategic plan. They may be influencing your talent strategies, and how your senior management and board conduct business. And full consideration of ESG-related values will help you to prepare for the future.

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