ESG Preparedness Report
The Annual ESG Preparedness Report (formerly The Sustainability Board Report) is a global benchmark of boards' ESG engagement.
Our flagship report assesses the level of ESG engagement by the boards of directors of the world's largest public companies.
Our assessment methodology has remained largely unchanged since 2019, but it has been progressively refined with the help of an expert panel that includes non-executive directors, non-executive chairs, board effectiveness and advisory professionals, academics, leadership advisors, and legal counsels.
Featured in this edition
88%
of companies have implemented ESG oversight
43%
of directors on relevant committees are ESG engaged
Synopsis
This year's findings illuminate both strides made and challenges ahead. There is significant growth in sustainability governance, increasing from 50% in 2019 to 88% in 2023. This means, more boards have adopted sustainability oversight as part of their current committees or dedicated a specialist committee to it. However, stagnation in ESG engagement levels among directors indicates a need for renewed focus on individual sustainable leadership capacity. We must understand this 'engagement ceiling' and advocate for continued dedication to upskilling and engagement.
Additionally, our data yet again underscores the pivotal role of women leading ESG engagement. Their consistent involvement outpaces their male peers, emphasising the need for more inclusive boardrooms. We do not assess diversity beyond gender but recommend that boards also consider directors of different ethnic and socioeconomic backgrounds. They often bring new ideas and experiences to the table.
