Enhancing Board Information and Stakeholder Engagement in the Era of ESG

Boards tend to get too little rather than too much information from management about ESG and stakeholder expectations. Companies are naturally responsive entities, but they shouldn’t just react to the latest pressure from a single stakeholder group; otherwise, the board (as well as investors and others) will wonder who is running the show. It is therefore critical for management to put stakeholder views in the context of the company’s business goals and explain how the response aligns with the firm’s long-term strategy.

Overview and Supplements

The insights in the overview of this report and its supplements are based on 1) findings from discussions with and polls of a 2022 working group of over 240 executives from 137 companies, 2) data provided by data analytics firm ESGAUGE, and 3) a survey of 80+ general counsel and corporate secretaries. 

The publication is divided into five parts:

• The Roles of the Board in the Era of ESG and Stakeholder Capitalism (Overview and Key Insights) 
• Incorporating ESG and Stakeholder Interests into Board Business Decisions (Supplement 1)
• Optimizing Board Composition, Structure, and Capabilities in the Era of ESG and Stakeholder Capitalism (Supplement 2)
• Enhancing Board Information and Stakeholder Engagement in the Era of ESG and Stakeholder Capitalism (Supplement 3)
• Improving Board Evaluations of Corporate, Management, and Its Own Performance in the Era of ESG and Stakeholder Capitalism (Supplement 4)