Report
The need for sustainability across the full spectrum of environmental, social, and governance (ESG) issues is remaking companies, supply chains, and economies. At the same time, companies are facing disruptions on other fronts—including the potential of generative AI to change how companies operate, new trade risks, geopolitical uncertainty, and regulatory changes. Taken together, these changes are driving the most profound business transformation in 50 years - and are having a fundamental impact on how the boards governing these companies must operate.
The INSEAD Corporate Governance Centre, in collaboration with Heidrick & Struggles and BCG has launched the second edition of the Board ESG Pulse Check based on surveys and roundtable discussions to examine the perceptions of boards towards a full spectrum of ESG issues, as well as how the drive for sustainability is influencing and reorganising the efforts of boards. The findings reveal how boards are adapting their own composition, governance, and process considerations with varying degrees of success to better meet their organisations’ ambitions and stakeholders’ expectations for sustainability.
Overall, the results of the survey highlighted that while significant progress has been made on boardroom awareness and acceptance of the sustainability agenda, availability and a self-declared lack of expertise at the board level has revealed a gap between intentions and prioritisation of the environmental, social and governance (ESG) agenda with only 29% of global board directors feel completely knowledgeable enough to challenge or monitor execution on sustainability, and 89% rely only on management updates to stay informed on the topic of ESG.
