Leadership in ESG integration: a study into board oversight, implementation and disclosure

The results are clear - boards are determined to prioritise the ESG agenda, and not least because they understand the materiality of many key ESG issues. Many have made significant progress - developing and publishing ESG policies, setting an ESG strategy, and operationalising their thinking across the organisation.

Read the full commentary in our report

It seems it is no longer a question of whether boards should be focussing on ESG at this point - but rather more how boards can address their ESG priorities effectively whilst aligning effort across the whole organisation.

The findings also highlight the current challenges around ESG - with business leaders revealing issues with operationalisation, data collection, reporting and stakeholder engagement.

Key findings at a glance

Respondents to the survey included board members, c-suite and senior executives from over 100 UK companies.

• 78% of boards have published an ESG or sustainability policy, or something similar.
• 88% of boards are engaging on ESG issues because they recognise their materiality to the business.
• 52% of boards have come under pressure on ESG issues from customers; 46% have faced pressure from employees.
• 77% of boards say they review risk management processes to ensure material ESG factors are accounted for.
• 44% of boards have put in place executive compensation schemes that include ESG criteria.
• 57% of boards have a formal structure for ESG governance.
• 73% of boards have engaged with employees on ESG issues; 59% and 55% respectively have engaged with customers and shareholders.
• 65% of boards feel they have sufficient skills and understanding in relation to ESG.
• 56% of boards agree they have gaps in their ESG disclosures.
• 39% of boards think they get adequate ESG data and information from management teams.

Our recent study into ESG practices within UK companies gives us a real insight into the maturity of thinking and action around ESG. It is clear that the ESG narrative has changed. Once a conversation about what and where to start, today’s ESG agenda is all about how to make a success of key initiatives and overcome the challenges around operationalising strategy, engaging stakeholders and enabling more effective reporting and transparency. Business resilience and success will rely on organisations’ - and their leaders’ - ability to respond to this new layer of business complexity.

Chris Fuggle, Global Head of Sustainability

Watch the expert panel discussion: Closing the gap - helping UK boards to embed ESG in strategy

In this insightful webinar a panel of ESG experts reflect on the above research and offer practical advice around embedding ESG.

Watch the webinar