NCBE_Advancing Excellence in the Boardroom and Beyond_AdobeStock_601617258
    NCBE_Advancing Excellence in the Boardroom and Beyond_AdobeStock_601617258

    Fostering Corporate Governance and Enhancing Board Effectiveness

    The Nasdaq Center for Board Excellence partnered with WTW to survey corporate directors and executive leaders on boardroom dynamics in emerging governance trends.

    The results explore how boards around the world are developing their approach to comprehensive governance and sustainability trends, including strategy, alignment with management and other stakeholders, and board involvement and representation.

    Boards acknowledge opportunities in governance and climate

    75% of board members agree a coherent environmental, social, and governance (ESG) strategy with clear priorities helps create sustainable organizational value and stronger financial outcomes.       

    Business strategy is a more important influence on ESG priorities than regulatory compliance.

     

    Yet, they acknowledge opportunities to enhance education on how to address environmental concerns

    48% of respondents report lacking skills and expertise for addressing climate issues.

    This gap is expected to decrease to 18% in 3 years.

    Board members embrace new approaches to board assessment

    Most commonly cited criteria for evaluating board effectiveness: the assessment of board composition, skills and diversity.

    Use of third-party assessments and facilitated workshops is expected to more than double in 3 years.

    Oversight will continue to be an issue for the full board

    But 3 in 5 organizations expect to have a standalone ESG, Corporate Social Responsibility (CSR), or sustainability committee in three years.

     

     

    Increasingly complex ESG-related governance risks require a stronger focus

    Only 3 in 5 board members think their board has dedicated sufficient time and resources to governance.

    Actions to take now!

     

    About the survey: A total of 349 board members participated in the Fostering Corporate Governance and Enhancing Board Effectiveness survey, which was conducted between February 15 and April 7, 2023.

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