ESG and stakeholder capitalism will have a meaningful and lasting impact on US corporate boards, according to a new study by The Conference Board. 68 percent of survey respondents believe that ESG will have a significant and durable impact on their boards, while 53 percent say the same about stakeholder capitalism.
Released today, a suite of reports describes how the focus on ESG and multi-stakeholder interests is affecting boards, and provides forward-looking insights on how boards can:
Incorporate ESG and stakeholder interests into their core business decisions;
Adjust their composition, structure, and capabilities;
Enhance the information that they receive and how they engage with stakeholders; and
Improve how they evaluate the company’s, senior management’s, and their own performance.
“We are at the outset of a sustainability transition of business, which overall may be as significant as the digital transition but will affect each company differently,” said Paul Washington, co-author of the report and Executive Director of The Conference Board ESG Center. “Accordingly, as with any ‘strategic inflection point,’ the role of the board is changing and becoming more of a strategic partner with management in setting priorities and balancing the interests of multiple stakeholders. This does not require a shift in the line between board and management responsibilities, but does require a fresh look at board composition, structure, and capabilities.”
The reports by The Conference Board ESG Center were produced with Morrow Sodali and Weil, Gotshal & Manges. Included throughout are insights from a Working Group featuring more than 240 executives from 137 companies. Highlights include:
Part 1: Implications of ESG and Stakeholder Capitalism for Boards
Overall impact and outlook
The focus on ESG and concern about the long-term welfare of stakeholders have already affected boards.
Topics discussed: For virtually all boards (95 percent), ESG and stakeholder capitalism has…
Read the full article here
