TBSR includes two measures of ESG engagement, being those who are considered ESG conscious or have an awareness and knowledge on issues and those who are ESG competent or having the capacity to act on issues.
Research Process Flow
Director’s ESG Engagement Assessment
Directors’ ESG engagement was assessed against a checklist. It reads:
1. Business Experience
Executive or board experience actively involved in sustainability strategy or governance
2. Non-Business Experience
Board member of a business material (under SASB) non-profit organisation, foundation, charity, or fellowship of an international campaign body
3. Education & Thought Leaders
Formal ESG/sustainability certification/accreditation or published paper/research/book or report in the area, or teaching capacity
1. Published interviews with individuals expressing details about their approach to ESG/sustainability, or e.g. published speeches or strategy
2. WEF (most common), UN Global Compact, CECP, WBCSD, think tanks with sustainability focus such as Aspen Institute, Salzburg Global Seminar, etc.
3. GCB.D, Diligent Climate Certificate, Recognised forum publication, author of a relevant book
In cases where the ESG engagement of a director was questionable, the data point was marked ‘for review’ and the assessment was then adjudicated by a different researcher.