ESG: Is It the New Board Game?

“What we’re really talking about is being responsive to the interests of an institutional investment community,” says Gaby Sulzberger, General Partner, Rustic Canyon/Fontis Partners, “and that’s true whether you’re a public company or a private company.” Sulzberger is talking about why ESG concerns are suddenly a focus for investors and an essential strategy for firms. About a third of global assets under management (AUM), Sulzberger says, factors sustainability into its investment decisions. In a new episode of CEO Perspectives, The Conference Board President and CEO Steve Odland sits down with Sulzberger to discuss all things ESG. Tune in for insights on:

• The new focus on sustainability: Environmental, social, and governance issues used to be treated separately by companies, but the broad focus of portfolio managers on corporate social purpose has ended this “Balkanization.”
• The importance of ESG to talent: Investors aren’t alone in demanding more corporate social responsibility. Employees want to work for companies that take ESG issues seriously.
• The increasing importance of board diversity: Despite gains, the number of women and racial minorities on boards remains low. Sulzberger: “It’s not an intent to exclude, but it comes from a lack of interest to include.”

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