ESG & Diversity
The continuing importance of ESG in a rapidly evolving risk landscape
Transform How Boards and Leaders Work Together
Meeting & Agenda Management
Seamlessly create, update and share agendas and board meeting materials.
Director Preparation
Access resources, view upcoming meetings and annotate board materials from any device.
Minutes & Actions
Easily capture minutes and actions during a meeting. Assign contributors and set automated prompts.
Signature & Resolutions
Send documents for approval integrated with DocuSign.
Virtual Data Rooms
Share and collaborate on documents with stakeholders in a secure room.
Secure Messaging
Have private conversations on a dedicated channel integrated for easy access.
Questionnaires
Complete self evaluations or D&O questionnaires in the same place as the boards material.
Director
Get new directors up to speed with the resources they need in one location.
Composition Planning
Identify gaps in board composition and recruit from a pool of 250,000 board members.
ESG and Stakeholder Activism: What Comes Next?
Over the past year, there’s been growing speculation that the ESG “bubble” may soon burst, and “ESG” itself has become a politically loaded term. Some in the financial industry also believe that rising interest rates and shifting investor priorities may lead to decreased interest in improving companies' ESG performance, with the focus instead on increasing shareholder value.
But as Modern Governance Summit 2022 emphasized, ESG is far from dead – in fact, with today’s rapidly evolving risk landscape, businesses cannot afford to ignore it.
“The lack of government engagement on climate change means risks are enhanced, not that they’re going away,” said Veena Ramani, Research Director at FCLTGlobal. “It’s the board’s job to work with management and ensure the organization makes smart decisions that allow it to be positioned for long-term resilience and success.”
Why ESG Matters More Than Ever
As threats from climate change and divisions caused by inequality become more apparent each year, ESG must remain on the mind of every future-focused business leader. They must map the impact of key ESG issues on the long-term business outcomes they want to generate.
Think about who will be your customers three years from now. What will they want? And your employees? Who will be there if you don’t treat them the way they expect?
— Helle Bank Jorgensen, CEO of Competent Boards
Employees, customers, suppliers and many shareholders are demanding faster and more decisive action on ESG issues. According to Jessica Wirth Strine, managing partner and CEO at Sustainable Growth Partners, the companies that deal with ESG activism most effectively are those that address the concerns of their numerous stakeholders.
And as Helle Bank Jorgensen, CEO of Competent Boards, noted, “Think about who will be your customers three years from now. What will they want? And your employees? Who will be there if you don’t treat them the way they expect?” Organizations that ignore ESG today will pay the price later.
Putting the Right Systems and Processes in Place
Whether they’re focusing on the ‘E,’ ‘S’ or ‘G’ in ESG, today’s board directors must ensure they have systems in place to track, monitor and report on their progress and compliance.
It’s all about risks and opportunities. Many companies make the mistake of seeing environmental issues as a silo, separate from the rest of the organization. But these are business issues and risks, so they should be treated as such. Run them through risk management systems, identify the risks and opportunities, then figure out how to navigate a path toward long-term success.
— Veena Ramani, Research Director at FCLTGlobal
Modern governance solutions, such as Diligent ESG, can help organizations promote greater collaboration among their ESG stakeholders, monitor ESG risks and find clarity on frequently evolving regulations and liabilities.
“It’s all about risks and opportunities,” said Ramani. “Many companies make the mistake of seeing environmental issues as a silo, separate from the rest of the organization. But these are business issues and risks, so they should be treated as such. Run them through risk management systems, identify the risks and opportunities, then figure out how to navigate a path toward long-term success.”
