Join BDO's Center for Corporate Governance Amy Rojik as she sits down with Board of Director Gloria Cordes Larson, to share thoughts on top of mind discussion points for boards on their companies activities around environmental social governance (ESG).
Key Takeaways
Recent events continue to drive significant focus, particularly on the social impacts and risks representing the “S” in ESG
ESG is more than a reflection of company values; rather at its core, addressing ESG issues is a key component of a smart business strategy, adding to company resilience and growth potential in ways that ensure long-term value
HOW: Whatever stage your board is at in considering ESG, some key questions in considering execution):
- Is the board focused on the right issues – apply the right materiality lens and take inventory of what you are already doing; leverage external rating information and engage with internal/external stakeholders
- Does the board have the appropriate skills and oversight processes for ESG - ESG may be an inflection point for board refreshment and be captured in charters
- Is the company taking strategic or tactical, reactive approach to ESG – emerges as strategic if you look through a “risk and opportunity lens” focused on the long-term
- Is the company setting appropriate KPIs and aligning with compensation - tracking progress and demonstrating accountability
- How is your company reporting ESG issues – don’t treat as a compliance activity; should be evolving as consistent, comparable, decision-useful
