Currently, few directors emphasize ESG issues as a significant board priority. In the National Association Corporate Director’s (NACD) 2018-2019 Public Company Governance Survey, just 28% report that it is important or very important to improve board oversight in this area. However, a majority would like their boards to take action next year. More than half want their boards to improve their understanding of current ESG-performance levels and 50% would like their boards to link ESG to corporate strategy.
Through the NACD report, directors reported the top five trends they foresee having the greatest effect on your company over the next 12 months.
With or without a concrete strategy in place, boards are taking steps to address technology disruption. According to BDO, an assurance, tax and financial adviser, and the firm’s 2018 “Cyber Governance Survey,” nearly half have increased capital allocation toward digital initiatives. Meanwhile, nearly one-third of respondents report they have not done any of these to address technology disruption, which may point to organizations overlooking significant opportunities and underestimating critical risks to their business.