Why corporate boards need sustainability experts

Demands for corporate sustainability now come from a full range of stakeholders: investors, consumers, supply chain partners, government regulators, and employees. Given the importance of environmental, social, and governance aspects for a company, Talal Rafi asks: why aren’t all companies making sure to have at least one sustainability expert sitting on its board of directors? 

 
Sustainability is the number one topic on which investors want to engage the board of directors during shareholder meetings. Investors are the most powerful stakeholders. When they want priority to be given to ESG (environment, social, and governance), should not the corporate board have members who have at least some form of expertise in ESG? Unfortunately, about 70% of board directors in a BCG-INSEAD Survey said their board was ineffective at integrating sustainability into governance and strategy building. Demands for sustainability coming not only from investors, but also from consumers, supply chain partners, government regulators, and employees are increasing year by year. It is only logical to have sustainability experts sitting on the board of directors of a company.

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Πηγή: blogs.lse.ac.uk