Elccles, R.G. et al
The board's role in sustainability: A new framework for getting directors behind ESG efforts
- Harvard Business Review
- 98(5), Sep-Oct, 2020: p.48-55
Investors increasingly understand that a corporation’s performance on pertinent environmental, social, and governance (ESG) factors directly affects long-term profitability—a recognition that is transforming “sustainable investing” into, more simply, “investing.” Most CEOs also now recognize that ESG issues should inform their corporate strategy. But one important constituency remains a stubborn holdout in the sustainability revolution: corporate boards. It is an unfortunate truth that directors tasked with securing their company’s future are often holding the enterprise back with an outdated emphasis on short-term value maximization. - Reproduced