Strategic Focus: The Evolving Role Of The Board In An ESG & Sustainability Landscape

Published 3 January 2024 by Priyanka Bawa & Kim Knickle &
Corporate Governance Disclosure Rules, Regulations & Frameworks ESG & Sustainability ESG & Sustainability Services ESG Consulting ESG Initiatives ESG Investment Consulting ESG Performance Improvement ESG Reporting Software Net Zero Sustainability Goals Sustainability Reporting Sustainability Risk Management Sustainability Strategy Strategic Focus

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Executive Summary

With ESG and sustainability becoming increasingly critical parameters for business performance, the role of the board of directors has evolved to directly engage with these matters. However, the terms of such engagement are still terra incognita. This report is designed to help key decision-makers in firms navigate this ambiguity effectively and efficiently. Specifically, boards should read this report to prepare themselves for an updated way of functioning, encompassing ESG and sustainability concerns. 

Table of contents

In a rapidly changing business environment, the role of the board is evolving to tackle sustainability head-on
ESG and sustainability have risen in status on board agendas
Board engagement with ESG and sustainability can differ
Conscious and continuous effort is crucial for boards to effectively engage with ESG and sustainability matters
Boards must be more accountable for sustainability issues

Table of figures

Figure 1. Drivers of the increasing prominence of ESG on board agendas
Figure 2. Role of the board in accelerating a firm’s sustainability journey
Figure 3. Equipping boards to take smarter sustainability decisions
Figure 4. The ESG information boards need

Organisations mentioned

Apple, AstraZeneca, Berkeley, Border to Coast Pensions Partnership, Boston Consulting Group (BCG), BP, Chapter Zero, Chevron, ClientEarth, ConocoPhillips, Deloitte, Egon Zehnder, Enacting Purpose Initiative, ExxonMobil, EY, Force on Climate-related Financial Disclosures (TCFD), GSK, IKEA, INSEAD Corporate Governance Centre, Institute of Directors, KPMG, Merck, Merlys, NASDAQ, PwC, Roche, Shell, Standard & Poor’s, Sustainability Accounting Standards Board (SASB), Tesco, Transition Plan Taskforce (TPT), UN Principles for Responsible Investment (PRI), Unilever, Universities Superannuation Scheme (USS), University of California, University of Oxford, US Securities and Exchange Commission (SEC)

About the authors

Priyanka Bawa

Senior Analyst
Priyanka is a Senior Analyst in the Verdantix ESG & Sustainability practice. Her current research focuses on ESG and sustainability consulting services and social aspects of ESG regulations, reporting and disclosures. Prior to joining Verdantix, Priyanka led diversity, equity and inclusion (DE&I) research in the legal and environment sectors. She holds a DPhil in Social Policy from the University of Oxford.

Kim Knickle

Research Director, ESG & Sustainability
Kimberly Knickle is Research Director of the ESG & Sustainability practice at Verdantix. Her research areas encompass ESG regulations and reporting, ESG risk, supply chain sustainability, circular economy, social impact, and sustainable finance. Kim has worked for more than 20 years in the IT industry, providing research and analysis to help companies invest wisely in new technologies. Before joining the analyst industry, she held various roles in IT services, engineering and product safety testing, beginning her career at Underwriters Laboratories, Inc. Kim holds an MBA from Boston University and a BS in Electrical Engineering from Cornell.