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  • Writer's pictureGustavo Bernal Torres

U.S. Corporate Boards Suffer from Inadequate Expertise in Financially Material ESG Matters

A case study highlighting the importance of ESG and supply chain management in the fashion sector and the impact on share price and investors-

  • The authors reviewed 1188 individual Fortune 100 board member credentials to determine whether companies with material ESG risks and opportunities had relevant expertise on their boards.

  • They found that very few sectors and very few companies were adequately prepared at the board level for issues that were already affecting their performance -- for example, one property and casualty insurance company has no environmental expertise on the board in a year experiencing $100 billion in damage caused by climate change--heightened extreme weather events. On another issue of growing materiality, cyber/telecom security, just eight directors of 1188 had expertise. They also examined COVID-19 and Black Lives Matter as related to board credentials and make recommendations on how to improve board ESG governance.



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