According to a report from TheCorporateCounsel.net, the careers of many directors may leave them with a problematic skills gap in light of the surge in momentum for ESG.
A study of 1,188 Fortune 100 board directors from NYU Stern’s Center for Sustainable Business shows that directors are fairly strong when it comes to S (social) experience, but drop off dramatically in E (environmental) and G (corporate governance). “In general, there is very little director expertise for the E, with all nine categories at approximately 1%,” the study concludes, though it points up some weaknesses in the way director credentials are measured. “But the fact that the data is out there – and investors’ growing interest in disclosure about the board’s role in ESG oversight – does suggest that there could be a benefit to examining and enhancing board sustainability credentials (through education and/or recruitment), and tying skills disclosure to ESG experience,” says TheCorporateCounsel.net.