In this podcast Susan Stenson, a partner at Independent Audit, discusses the impact that environment, social and governance (ESG) issues are having in the boardroom. She outlines the importance of linking these areas back to the overall purpose and strategy of the organisation to enable directors to understand which issues they should focus on and how they should communicate their approach to their stakeholders. Susan outlines how governance lays the foundations for a strong response to ESG issues from boards of directors. She also argues that if the board is honest about how it has decided its ESG priorities, its approach is much more likely to be successful.

With a broad coalition of interests coalescing around the ESG banner, there are many reasons to support boards in developing their ESG understanding and decisions to improve relevant ESG-related activities.

Boards that act now in framing their ESG issues will be ahead of the curve in terms of the effective delivery of new products and services in established and new formats and ongoing sustainability.

The Next Generation NED Network held a lively and wide-ranging discussion on ESG – and particularly, the role of NEDs in steering their businesses through this seemingly ever-changing landscape. There were a variety of viewpoints and areas of expertise spanning finance, communications and academia.

This paper seeks to outline the rise of environmental, social (or sustainability1) and governance factors (ESG) in the commercial sector and explain how they will become increasingly relevant to modern charities. It covers the drive behind the increasing use of ESG factors in investment decisions, reputational risks, environmental awareness amongst consumers and clients and the need to attract talent with different motivations to work.

Wherever the pressure for embracing ESG comes from, it is the board that should lead on defining the organisation’s values and aims in tackling ESG issues as part of its legal, ethical and cultural responsibilities. However, with so many other issues competing for the board’s time, it can be difficult to explicitly address ESG in board papers and discussions.

The ESG Summit brought together experts from across industry to explore recent developments in the fast-moving ESG landscape. Here are some key takeaways.

Boards need to see their way through the myriad of definitions, interpretations and priorities that have come to be ESG. The question is: how?

Chris Hodge FCG reflects upon acting as moderator for a panel discussion about how ESG issues are impacting on companies, investors and the relationship between them.