Nasdaq Article Discusses How to Emphasize the ‘G’ in ESG as a Board Member

An article published by Nasdaq titled, “Crafting the ‘G’ in ESG: Accountability in the Boardroom” considers the dynamic topic of ESG and strategies for boards to meet the ESG expectations of their stakeholders. The article notes that while the demand for ESG-based products has skyrocketed, 40% of directors were found to have some level of knowledge in the ESG space and only 8% of board directors were found to be competent and capable of effective, embodied action, according to a 2021 study of the top 100 public corporations internationally. The article offers suggestions such as gathering ESG data through software developments, measuring and understanding stakeholder need, and examining their own internal culture. The article emphasizes “[o]ver time, diverse boards will have more robust debates, make sounder decisions, understand customers better and attract higher performing employees.” And while “one size does not fit all,” the authors explain that “each board should consider whether their current governance framework will meet these new expectations.”