Which of the following statements regarding governance is most accurate?

Strong governanceis foundational for effectively addressingenvironmental and social riskswithin a company, as highlighted in CFA’s ESG materials. Good governance practices create structures and accountability mechanisms that improve oversight of E&S issues. Statement B is incorrect because direct board involvement in private equity doesn’t eliminate governance risks entirely. Statement C is misleading because negative governance signals actuallyreduce confidencein future earnings, not increase it.