Questions you can ask management to understand where your company stands on ESG and how to chart a path forward:
Are ESG risks included in our ERM program? What are our key ESG risks
that the business faces? How are we addressing them? How do they evolve
under different time horizons?
Is ESG being baked into our long-term strategy? How are we looking at
ESG to innovate and effectively add value or cost savings to our business?
Are ESG risks dealt with separately, or are they fully included in our overall
strategy? Are we keeping an eye on what our competitors are doing?
When investors want to talk about our long-term sustainable value,
should we ask the sustainability or corporate responsibility team to step
in? If our corporate responsibility leader or sustainability officer has oversight
of our ESG efforts, is that team working closely with finance, investor relations
and risk management? Are members of those other teams fully versed on our
ESG efforts? Or is it a siloed effort?
Do we have the information we need to oversee our ESG strategies and
risks? Is the board getting the right metrics to monitor these risks effectively?
Have we considered using a framework to assess/report ESG metrics
at our company? Have we taken a look at the SASB framework, or other
available models?
Can we improve the transparency of our ESG disclosures considering
investors’ expectations? How can we improve our ESG disclosures and
increase trust in this area? How do we benchmark against others?
Are we effectively telling our ESG story to investors? Have we included
the key ESG-related risks and opportunities in our broader shareholder
disclosures—rather than simply including them in a separate report?
Have we clearly conveyed to investors how ESG is part of our company’s
strategy? Are directors who are meeting with shareholders prepared to
answer those questions?
Extract from PWC Report
https://www.pwc.com/us/en/services/assets/pwc-esg-directors-boardroom.pdf
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