Transforming Board ESG Oversight

Over the past two decades, environmental, social, and governance (ESG) issues have been appearing more frequently on CEO and board agendas. In recent years, the pace has accelerated rapidly, driven by investor interest, competitive pressure, and human capital issues. Investors ask about ESG oversight, ESG ratings (put forth by Institutional Shareholder Services, MSCI, S&P Global, etc.), workforce diversity, ESG tied to compensation, and even corporate culture as companies assess their likelihood to achieve growth goals and remain resilient in the face of challenges. Competitors are setting net-zero goals for greenhouse gas, or GHG, emissions and launching products that are purportedly better for the environment. Employees routinely indicate they care about company purpose. And the role that businesses play in uplifting people and society is becoming increasingly adjoined with environmental and social justice expectations...