ESG is an example of modern governance in action
It is no longer a luxury. In the face of the increasing climate crisis, your board must now have the knowledge and abilities to comprehend and accept new corporate obligations.
One of the most important drivers of the growing need for practical ESG strategies is investor focus.
Currently, 64% of board members believe their company's strategy is tied to ESG issues, but only 29% are aware of the risks.
Are you prepared to manage climate risks?
For good reason, there is an increase in the demand for comprehensive ESG expertise. If you're on the board, you're probably already feeling the strain.
Here's how things stand right now:
As climate hazards mount, your board must grasp what they are up against and how to negotiate the issues more effectively. It is no longer sufficient to hire a consultant.
Your board must be able to comprehend and embrace the issues since they provide real-world insight into the best way forward for your firm.
In order to satisfy the massive demands, your board must have the internal capacity to grasp what is going on.
Your board of directors must also make projections based on a high level of competence.
Are you ready for a multifaceted ESG strategy?
Any ESG strategy will generate more expectations over time, and your board must be prepared to go above and beyond to fulfil them. This entails combining the requirement to train your employees with your ESG duties.
It could be one of the most extensive endeavours you've ever undertaken.
Find important personnel to collect data and begin reporting
It's possible that you got lucky and your team already possesses the necessary skillsets for data gathering and ESG reporting. More often than not, you will need to enrol these folks in online courses to ensure they obtain the necessary skills and produce the metrics.
Make use of your ESG knowledge foundation
When your colleagues gain a foothold in ESG and reporting, they will be able to more easily access that knowledge and experience. You can also assign board members to specific departments for regular check-ins and knowledge sharing. This collaborative approach means that your employees can make the most of their knowledge while also being recognised for it.
It's essentially a mentoring method. It helps your board to learn about ESG in a way that is both understandable and relevant to your company. It also allows you to expand into other areas to ensure that everyone on your team has a complete understanding of the goals.
By sharing this ESG knowledge, you are fostering collaboration among your employees and board members, which will aid in breaking down the boundaries that frequently appear between the two groups. You may include knowledge exchange, data collection, and reporting into your connection. As a result, everyone's time is being spent wisely and efficiently.
Bring on board members who are ESG-savvy
You may already have board members who are familiar with ESG initiatives, but if not, look for them. They will support your efforts.
You might look for leaders who have already shown their enthusiasm and love for the task to identify persons with the knowledge and expertise you require.
Even if you know you want a new ESG candidate, making it happen is difficult.
Their skill set may not perfectly match what you require, and they may be unwilling to devote time to your board. On the other hand, you may not now have an opening and must thus wait for the next board member transfer.
Nonetheless, stakeholders want to discover the perfect candidate.
Investors want to know that the company makes decisions based on the finest available expertise and reports to the highest standards. It's simple to see how misunderstandings could harm a company's bottom line without on-staff and on-board point people with ESG knowledge.
Our Directors’ Institute- World council of Directors can help you accelerate your board journey by training you on your roles and responsibilities to be carried out in an efficient manner helping you to make a significant contribution to the board and raise corporate governance standards within the organization.
Our ESG Expert certification will help you to amplify your understanding of corporate governance in a detailed manner paving a way for you to become a globally recognized ESG leader.