Corporate Boards Raise Concerning Knowledge Gaps When It Comes to Sustainability, New Global Research Finds
A new report by Heidrick & Struggles, INSEAD, and BCG, found that more than two-thirds of directors (68%) feel that sustainability has little impact on financial performance today, and only 10% believe sustainability will negatively affect medium- to long-term financial resultsThe survey also found that only 29% of global board directors feel knowledgeable enough to challenge or monitor execution on sustainability, and 89% rely only on management updates to stay informed on the topic of ESGA combined 48% of respondents confirmed that knowledge or experience with sustainability is either “not at all” or just “slightly” part of the competency matrix for their board selectionCHICAGO—Though significant progress has been made on boardroom awareness and acceptance of the sustainability agenda, capacity challenges and a self-declared lack of expertise at the board level has revealed a gap between intentions and prioritization of the environmental, social, and governance (ESG) agenda. That is according to a new global survey of board directors published today by Heidrick & Struggles (Nasdaq: HSII), a premier provider of global leadership advisory and on-demand talent solutions, in partnership with Boston Consulting Group (BCG), one of the world’s leading management consulting firms, and the INSEAD Corporate Governance Centre, a global INSEAD center of excellence for research, innovation, and impact in corporate governance.