{"id":10182,"date":"2021-12-10T13:50:00","date_gmt":"2021-12-10T18:50:00","guid":{"rendered":"https:\/\/www.dhrglobal.com\/?p=10182"},"modified":"2022-02-18T10:41:56","modified_gmt":"2022-02-18T15:41:56","slug":"q4-2021-board-perspective","status":"publish","type":"post","link":"https:\/\/www.dhrglobal.com\/insights\/q4-2021-board-perspective\/","title":{"rendered":"Q4 2021: Board Perspective"},"content":{"rendered":"\n<div class=\"block-hero alignfull  has-breadcrumb\">\n    <div class=\"outerwrap\">\n        <div class=\"wrapper\">\n            <div class=\"copy\">\n\n                                    <ul>\n                        <!-- Breadcrumb NavXT 7.0.2 -->\n<li><a property=\"item\" typeof=\"WebPage\" title=\"Go to Insights.\" href=\"https:\/\/www.dhrglobal.com\/insights\/\" class=\"post post-page\" aria-current=\"page\"><span property=\"name\">Insights<\/span><\/a><meta property=\"position\" content=\"1\"><\/li>                    <\/ul>\n                \n                                    <h1>Q4 2021: Board Perspective<\/h1>\n                \n            <\/div>\n        <\/div>\n\n            <\/div>\n<\/div>\n\n\n<div class=\"block-insights-detail no-intro\">\r\n\t\t<div class=\"meta\">\r\n\t\t<p class=\"date\">December 10, 2021<\/p>\r\n\t\t<p class=\"type\"><a href=\"https:\/\/www.dhrglobal.com\/insights\/#\/type\/board-ceo\">Board &amp; CEO<\/a>, <a href=\"https:\/\/www.dhrglobal.com\/insights\/#\/type\/insights\">Insights<\/a><\/p>\t\t<p class=\"author\">Authors:<\/p><ul><li><a href=\"https:\/\/www.dhrglobal.com\/consultant\/mike-magsig\/\">Mike Magsig<\/a><\/li><li><a href=\"\"><\/a><\/li><li><a href=\"https:\/\/www.dhrglobal.com\/consultant\/heather-smith\/\">Heather Smith<\/a><\/li><\/ul>\t<\/div>\r\n<\/div>\n\n<p>At DHR, we are globally engaged to stay apprised of Board &amp; CEO agendas. The world is quickly changing, and with it a tectonic shift in the focus toward environmental and social topics occurred during the 2021 proxy season. While companies have been analyzing ESG for years, for many stakeholders the past year served as a catalyst to prioritize, activate and integrate ESG risk management into the organization and strategic plan. Covid 19-related health concerns, civil unrest due to social injustice, economic inequalities and climate change all amplified the importance of a well-run ESG program.<\/p>\n<h2>Opportunities for Enhancing ESG Oversight&nbsp;<\/h2>\n<ul>\n<li><strong>Shift from a compliance to a strategic mindset.<\/strong> Moving from a compliance to a strategic mindset will require deepening the board\u2019s ESG knowledge. Bringing external insights into the boardroom through board education programs can help the board understand ESG-related trends that may affect the company\u2019s business, including market driven and regulatory developments, evolving stakeholder expectations and megatrends.<\/li>\n<li><strong>Know the ESG factors that matter most to the business.<\/strong> Having management conduct, and the board oversee, a sustainability materiality assessment involves engaging with the company\u2019s most important stakeholders to identify and prioritize ESG topics. Technology, climate, supply chain, cybersecurity, and data governance all present an opportunity for either competitive advantage or failure.<\/li>\n<li><strong>Consider expanding key board committee responsibilities to include ESG. <\/strong>Expanding the purview of key committees aligns environmental and social oversight responsibilities with the core work of those committees and may better integrate related matters into overall governance. For example, the nominating and governance committee can focus on addressing the expectations of stakeholders and integrate material issues into the full board, committee responsibilities and areas of expertise; the compensation committee can oversee ESG alignment to executive; the audit committee can oversee ESG disclosure reporting.<\/li>\n<li><strong>Oversee how the company is telling its ESG story.<\/strong>&nbsp;While different company communications will target different audiences and have different objectives, all communications should articulate a clear, consistent, long-term strategy for value creation. ESG disclosures should tie into the narrative coming from the rest of the company\u2019s external reporting.&nbsp;The board can play an important role in overseeing the consistency and clarity of the company\u2019s ESG narrative.<\/li>\n<\/ul>\n\n<div class=\"block-billboard alignfull \">\n\t<div class=\"maybe-wrapper\">\n\t\t<div class=\"inner\">\n            \n\n<p>\u201cA growing number of companies are embracing ESG matters as a strategic business imperative. They recognize ESG\u2019s potential to build long-term competitive advantage, enhance resiliency to accelerating sustainability risks, and attract socially and environmentally conscious investors, talent and customers.\u201d<\/p>\n\n\n\t\t<\/div>\n\t<\/div>\n<\/div>\n\n\n\n\n\n<h2 id=\"get-the-facts\">Get the Facts<\/h2>\n\n\n\n<p>Against a backdrop of pandemic- and climate-related concerns, ESG emerged as a top concern for today\u2019s stakeholders &#8211; and boards are being held accountable.<\/p>\n\n\n\n<h3 id=\"does-your-company-report-esg-information-externally\">\u201cDoes your company report ESG information externally?\u201d<\/h3>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" width=\"504\" height=\"396\" src=\"https:\/\/www.dhrglobal.com\/wp-content\/uploads\/2022\/01\/Board-and-CEO-Q4-Newsletter-charts.png\" alt=\"Data on companies reporting ESG externally\" class=\"wp-image-10192\" srcset=\"https:\/\/www.dhrglobal.com\/wp-content\/uploads\/2022\/01\/Board-and-CEO-Q4-Newsletter-charts.png 504w, https:\/\/www.dhrglobal.com\/wp-content\/uploads\/2022\/01\/Board-and-CEO-Q4-Newsletter-charts-300x236.png 300w, https:\/\/www.dhrglobal.com\/wp-content\/uploads\/2022\/01\/Board-and-CEO-Q4-Newsletter-charts-320x251.png 320w\" sizes=\"(max-width: 504px) 100vw, 504px\" \/><\/figure>\n\n\n\n<h3 id=\"which-channel-does-your-company-use-for-esg-reporting\">\u201cWhich channel does your company use for ESG reporting?\u201d<\/h3>\n\n\n\n<p><\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" width=\"432\" height=\"283\" src=\"https:\/\/www.dhrglobal.com\/wp-content\/uploads\/2022\/01\/Board-and-CEO-Q4-Newsletter-charts-2.png.jpg\" alt=\"Data on reporting channels for ESG\" class=\"wp-image-10194\" srcset=\"https:\/\/www.dhrglobal.com\/wp-content\/uploads\/2022\/01\/Board-and-CEO-Q4-Newsletter-charts-2.png.jpg 432w, https:\/\/www.dhrglobal.com\/wp-content\/uploads\/2022\/01\/Board-and-CEO-Q4-Newsletter-charts-2.png-300x197.jpg 300w, https:\/\/www.dhrglobal.com\/wp-content\/uploads\/2022\/01\/Board-and-CEO-Q4-Newsletter-charts-2.png-320x210.jpg 320w\" sizes=\"(max-width: 432px) 100vw, 432px\" \/><\/figure>\n\n\n<div class=\"block-callout \">\n\t<div class=\"maybe-wrapper\">\n\t\t\t\t<div class=\"right\">\n            \n\n<h2 class=\"has-text-align-left is-style-underlined\" id=\"chief-takeaways\">Chief Takeaways<\/h2>\n\n\n\n<p>It would be difficult to overstate the level of stakeholder interest in company ESG practices and performance.<\/p>\n\n\n\n<p>It is paramount that companies develop robust governance policies regarding reporting ESG information.<\/p>\n\n\n\n<p>Now is a good time to continue to deepen your board\u2019s knowledge and enhance ESG oversight to help guide your company through these dynamic, disruptive times.<\/p>\n\n\n\t\t<\/div>\n\t<\/div>\n<\/div>\n\n\n<div class=\"block-cta has-dark-blue-background-color alignfull\">\n\t<div class=\"maybe-wrapper\">\n        \t\t<div class=\"left\">\n\t\t\t<h2>Supporting Your Board<\/h2>\t\t\t\t\t<\/div>\n\t\t<div class=\"right\">\n            \n\n<p>At DHR, we stay on top of key trends impacting our clients and their businesses. We strive to keep our clients well informed, connected, and prepared for a future of value creation. Contact us if we can provide additional insight or service to meet your needs<\/p>\n\n\n\n<div class=\"wp-block-button alignleft\"><a class=\"wp-block-button__link\" href=\"https:\/\/www.dhrglobal.com\/function\/board-ceo\/\">Learn More<\/a><\/div>\n\n\n        <\/div>\n\t<\/div>\n<\/div>\n\n\n\n\n\n\n<p class=\"has-text-align-right has-csmall-font-size\">Excerpts in this article from \u201cFour opportunities for enhancing ESG oversight,\u201d June 2021, By Corporate Board Member &amp; EY<\/p>\n\n\n\n<p class=\"has-text-align-right has-csmall-font-size\">Data taken from an EY 2021 survey of 400 corporate board directors<\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>At DHR, we are globally engaged with Chairman and CEO conversations about effective board governance. The world is quickly changing, and with it, evolving governance can lead to stronger corporate value creation for all stakeholders.<\/p>\n","protected":false},"author":20,"featured_media":10202,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[16,1],"tags":[48,45,44,55,53,54],"insights_type":[49],"acf":[],"_links":{"self":[{"href":"https:\/\/www.dhrglobal.com\/wp-json\/wp\/v2\/posts\/10182"}],"collection":[{"href":"https:\/\/www.dhrglobal.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.dhrglobal.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.dhrglobal.com\/wp-json\/wp\/v2\/users\/20"}],"replies":[{"embeddable":true,"href":"https:\/\/www.dhrglobal.com\/wp-json\/wp\/v2\/comments?post=10182"}],"version-history":[{"count":21,"href":"https:\/\/www.dhrglobal.com\/wp-json\/wp\/v2\/posts\/10182\/revisions"}],"predecessor-version":[{"id":10769,"href":"https:\/\/www.dhrglobal.com\/wp-json\/wp\/v2\/posts\/10182\/revisions\/10769"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.dhrglobal.com\/wp-json\/wp\/v2\/media\/10202"}],"wp:attachment":[{"href":"https:\/\/www.dhrglobal.com\/wp-json\/wp\/v2\/media?parent=10182"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.dhrglobal.com\/wp-json\/wp\/v2\/categories?post=10182"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.dhrglobal.com\/wp-json\/wp\/v2\/tags?post=10182"},{"taxonomy":"insights_type","embeddable":true,"href":"https:\/\/www.dhrglobal.com\/wp-json\/wp\/v2\/insights_type?post=10182"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}