Oversight of ESG and nonfinancial matters

March 2021

The rise to prominence of environmental, social, and governance issues (ESG) has caused boards to assess how best to oversee these matters. Investors and other stakeholders are calling for both concrete actions and heightened disclosures on a range of nonfinancial topics, most notably those related to the environment and the workforce. Companies and boards are scrambling to respond, while also striving to clarify the link between ESG, financial performance, and long-term strategy.

During a February 25 virtual meeting, Lead Director Network (LDN) members were joined by Neil Stewart, director of corporate outreach for the Sustainability Accounting Standards Board (SASB), and Yumi Narita, executive director of corporate governance at the Office of the New York City Comptroller, for a discussion about ESG priorities and reporting. Members then participated in a separate dialogue about board oversight of ESG issues.