Board Agenda, is launching a major new study to determine how boards in the UK are integrating with environmental, social and governance (ESG ) issues into their business. The survey is now open to respondents.
ESG issues are rising up the board agenda at pace—but many boards are struggling to get to grips with the issues involved. Recent studies have revealed that more than two-thirds of directors are worried they are not doing a good enough job at integrating ESG into company strategy and governance.
The first problem is strategic. Many boards are struggling to frame the debate about ESG—for example, they are not certain whether this is an issue of fiduciary responsibility or materiality. And while they recognise the need to link purpose to corporate strategy, they are not clear on how to do that.
Then there are more practical concerns. Who on the board should take ultimate responsibility for ESG matters? Should ESG issues be routinely discussed at every board meeting—and how much time should be devoted to the conversation? What is the best way for boards to structure oversight—is an ESG committee, for example, the right approach?
There is no single right answer to any of these questions. For one thing, every business is different—it faces its own ESG challenges, which must be confronted and resolved in the context of the organisation’s broader imperatives. Moreover, the ESG environment continues to evolve. A stream of new regulation, particularly around climate change mitigation, brings new responsibilities and risks. But other issues are becoming more important too—the social debate around diversity and inclusion is just one example.
In the face of such difficulties, it may be tempting for boards to put off making firm decisions about how to seize the ESG nettle. In many cases, boards continue to deal with ESG considerations on an ad hoc basis, rather than thinking more holistically about oversight and governance.
Major new study
It is in this context that Board Agenda, in partnership with Mazars, the international auditing and accounting firm, is launching a major new study into how boards are approaching ESG—looking at the challenges they are finding most difficult and how they are responding. The research and subsequent report are being produced in association with Henley Business School. The study will provide a snapshot of policies and behaviours today and, crucially, insights into how boards showing leadership on ESG are tailoring their approach to strive for advantage.
This survey is a valuable attempt to help to close this knowledge gap. Your participation is strongly recommended and highly appreciated.