Looking ahead

How boards could improve

Looking ahead

How boards could improve

Respondents were asked what changes – if any – to the way their board operates would enable it to oversee ESG more effectively. Their comments include the following:

‘A recent review of ESG reporting and other requirements will lead to minor changes in committee terms of reference. More complete assurance across ESG measures and more regular detailed reporting will be overseen by the audit committee and feed into the CEO report and annual integrated report’

‘Consult external experts to assess the proposals from the management. Become more acquainted with some more technical topics (through training sessions)’

‘More diverse directors’

‘Involve a higher number of experts in the ESG field’

‘None. We recently restructured so governance was the primary committee for ESG oversight (including strategy, prioritization, monitoring and external reporting), but other committees oversaw the oversight of ESG topics related to the underlying subject matters that those committees oversee’

‘Increased training in ESG. This is work in progress and has been captured in the directors' training plan for the new year’

‘The sustainability committee is currently an executive committee. The board would have more oversight if it became a formal board sub-committee’

‘Specify department in company to be ESG-responsible’

‘More clarity around corporate governance and oversight of ESG issues in committee charters’

‘ESG committee and knowledge as to what is required’

‘More regular updates on ESG landscape and company-specific ESG scores’

‘Creating a sustainability committee’

‘To have more board member involvement’

‘More deliberations at board level, including presentations from external experts to acquaint the board with the journey being undertaken’

‘Add more board members who are former general counsel. And supply legal training’

‘We would need to have leadership from the board level to do more than receive information that management chooses to report on with respect to operational matters and to amplify the board's ESG risk oversight capacity and responsibility. Unfortunately, the scope of active leadership does not currently extend to this at present’

‘Annual reviews’

‘More concrete rules on ESG disclosure and expectations. More guidance on the use of frameworks’

‘SEC guidance and clarity on ESG’

‘Better reporting and disclosure’

‘Dedicated ESG committee’

‘Now forming a new ESG executive oversight committee. It can help to consolidate and prioritize ESG issues for board discussion’

‘May have a separate committee’

‘Setting broad corporate goals for ESG improvement’

‘More knowledge of ESG topics’

‘The board is changing to establish a new committee to focus on ESG issues’

‘A better understanding of what ESG means and how it impacts our organization’

‘Take an active interest in the topic and learn about it’

‘Clear responsibility to the governance and human resources committee’

‘More focus on overall ESG strategy versus just the ESG report preparation process’

‘Shareholder pressure’

‘CSR committee of the board’

‘Better formalizing of the subject matters that fall under ESG’

‘Formalized ESG strategy oversight and periodic ESG reporting’

‘Establishing a fully independent sustainability committee’

‘Having a clear mission statement on ESG and setting well-researched ESG targets based on evolving industry standards’

‘New board members’

‘Viewing ESG as an across-the-board responsibility that is pertinent to all committees’

‘ESG is an evolving area and the board continues to evolve its approach’