The company's board is tasked with guiding the organisation through the numerous legislative and environmental changes on the horizon. Its disconcerting that only 54% of the interviewed board members believe that ESG is integrated into the company's strategy. Furthermore, while there has been a notable improvement from the previous survey, just over 50% of board directors feel adequately prepared to oversee ESG disclosures.
So, where does this lead us? Undoubtedly, it underscores the significance of providing training to ensure that board members grasp the various facets of the ESG landscape and accord it the importance it deserves. Moreover, it is essential to enhance engagement with experts in this field to steer the companies in the right direction effectively.
How does this impact others? We, as stakeholders, are directly or indirectly affected by the board's lack of knowledge, which significantly hampers their capacity to make informed decisions and provide proper guidance to the company. The risks multiply as the absence of clear direction diminishes the company's resilience, potentially affecting employees, shareholders, customers, and suppliers, not to mention the broader community.
The need for education is widespread, extending to our boardrooms. We strongly encourage you to peruse the PWC study by following this link.