There’s a disconnect between the C-suite and the boardroom when it comes to prioritizing sustainability and ESG goals. Nine in 10 chief executives say they are focused on ESG issues, and nearly half are taking a leading role in assessing them. Yet many CEOs aren’t getting much help from their boards, according to a 2021 New York University study of Fortune 100 board directors.
The NYU study found that less than a third of board members had any relevant ESG expertise. For example, despite experiencing $100 billion in extreme weather-related damage in one year, the study found that a well-known property and casualty insurer had no environmental expertise on its board of directors.
Companies need to close such gaps if they want to build trust with investors and employees, to boost corporate performance, and to address the reality of climate change, says the study’s lead author, NYU Stern Center for Sustainable Business director and professor Tensie Whelan. In a recent interview, Whelan explained what boards need to do to meet the challenge. This interview has been edited for clarity and length.
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