In a nutshell: The overall results of a recent survey from law firm Heidrick & Struggles and the INSEAD Corporate Governance Centre, revealed a clear disconnect between what board members say about the importance of climate change to their companies and what the boards actually do.
- 75 percent of directors across 301 board members in 43 countries stated that climate change was an important consideration to their companies’ strategic success.
- A similar share (72 percent) of board members said they were confident their firms will meet their climate goals.
- However, one out of every two board members (50 percent) surveyed expressed concerns with the level of reporting they receive on climate change progress.
- More than two-thirds (69 percent) indicated climate change knowledge is not a formal requirement for joining their board, and climate change knowledge is not included in their board’s competency matrix.
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“As companies continue to evolve their ESG efforts — marked by real shifts in priorities in this pandemic era — boards whose primary focus is enforcing good corporate governance must lead on climate change,” said Louis Besland, partner in Heidrick & Struggles’ London and Paris offices. “Regulatory and other pressures are converging to influence access to capital, as insurers, investors and lenders are increasingly requiring ESG disclosure that mirrors financial reporting to secure funding.”
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