The “2023 Annual ESG Preparedness Report” from The Sustainability Board benchmarks select board ESG oversight practices and director engagement among the world’s largest 100 public companies and the 100 largest US public companies based on website-accessible disclosures as of September and October 2023.
Most notably, the percentage of boards with a committee expressly responsible by charter (typically) or other governance document for sustainability oversight (whether a traditional key committee, standalone ESG/sustainability committee, or otherwise) increased from 54% in 2019 and 80% last year to 88% currently (95% US). A bare majority of US companies have standalone dedicated sustainability committees (51%), compared to 63% globally. In contrast, nearly half of US company boards have an ESG narrative in their relevant committee charters (or other relevant governance document) vs. just 41% of companies globally.
The report suggests action items for boards seeking to advance their sustainability stewardship.