Deloitte has
released findings of a survey and white paper that highlight the top reasons why corporate responsibility and sustainability should be on the board.
“
The Responsible and Sustainable Board,” white paper highlights reasons why corporate boards should pay more attention to risks and opportunities associated with corporate responsibility, sustainability and climate change.
According to a press release from the company, 220 directors were survey at U.S. companies with over $1 billion in revenue, the key findings include the following:
- 79 percent of the directors responding have a strong or moderate understanding of the business risks associated with corporate responsibility, sustainability (CR&S) and climate change;
- 76 percent have a strong or moderate understanding of the business opportunities associated with CR&S and climate change;
- Nearly one-half of directors think their boards and management are committed to addressing CR&S and climate change;
- One-half of directors think their companies’ response to CR&S is integrated into business strategy and risk management, while 41 percent report no such integration;
- 39 percent of directors reported that their companies have set goals for reducing greenhouse gas emissions; fifty nine percent reported no such commitment;
- Almost one-third of directors think there is growing investor interest in their companies’ response to climate change/business sustainability issues, while 39 percent do not think there is growing interest.
- Thirty-five percent of directors see value in having an environmental audit - measuring greenhouse gas emissions and energy consumption; and
- Thirty-seven percent of directors favor full-board oversight of CR&S, while another 37 percent indicated oversight should reside in existing board committees, such as risk committees (24 percent), governance committees (24 percent), strategy committees (22 percent) and audit committees (15 percent).
“Despite the current economic environment the board’s role is undoubtedly increasing as there is greater awareness of the business risks and opportunities associated with corporate responsibility, sustainability and climate change.”, said Eric Hespenheide of Deloitte’s Enterprise Sustainability group.
