Vantiam | Investor ESG concerns need to be a priority for Board Directors
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Investor ESG concerns need to be a priority for Board Directors

This article from Responsible Investor highlights the need for Company Board Directors to have more insight into ESG issues and appreciate the importance of interacting more with their shareholders. This is to allow better understanding of what is important to their stakeholders in order to make better, sustainable and responsible long term company investments and decisions.

Based on a survey of company directors conducted by PwC in the United States, it is evident that ESG expertise is not a board priority (at least not in the US) and there is a clear lack of knowledge by many company directors on important and common ESG issues. With this in mind, this article emphasises it is no surprise that there is a general poor engagement between investors and directors on ESG topics.

In an attempt to increase ESG awareness amongst Company Board Directors, LeaderXXchange, an organisation that advises and promotes diversity and sustainability in governance, leadership and investment, launched The Investor Director Dialogue on Climate-related Risk Management series in 2016. LeaderXXchange partnered up on this initiative with executive search firm, Spencer Stuart’s European Board Practice group, who assisted by assisting Board Directors hear first-hand on the changing profiles and skills investors expected boards to have and new traits they want companies to adopt.