Commissioner eyes diversity and expertise to make the most of opportunities
Boards are central to companies addressing ESG issues and should look to enhanced diversity and expertise to fulfill this role in a positive way, according to SEC member Allison Herren Lee.
Lee explained that despite some progress, evidence suggests directors have been slow to understand the need to integrate climate and other ESG issues into governance practices. She cited a 2019 report as finding that only 6 percent of US director respondents picked climate change as a focus for the coming year and that 56 percent thought investor attention on sustainability issues was overblown.
‘The world’s largest asset managers and other institutional investors have been direct and vocal in conveying that they consider ESG material to their decision-making,’ Lee said in a speech earlier this week to the Society for Corporate Governance. ‘No matter the view of regulatory involvement in climate and ESG disclosures, directors must reckon with this growing consensus and growing demand from the shareholders who elect them.’
https://www.irmagazine.com/esg/secs-lee-looks-boards-role-esg
