ESG: Primary Committee for ESG Oversight

ESG: Primary Committee for ESG Oversight

  • Deloitte’s recently published “Emerging Trends in ESG Governance for 2023” report focuses on the primary oversight responsibility for ESG in S&P 500 companies 
  • The graph below shows the primary committee responsible for ESG governance based on proxy research of S&P 500 companies


Source:  Deloitte

Key Findings…

  • In 2022, only 3% of  S&P 500 companies did not disclose their overall ESG board governance approach, down from 14% in 2021
  • While the nomination and governance committee is commonly responsible for ESG, some companies are allocating ESG oversight responsibilities to other committees/full board
  • A multicommittee/board ESG framework is on the rise with 51% of the S&P 500 companies stating that that either a) the full board combined with a committee(s) or b) multiple committees have responsibility for overseeing aspects of ESG activities

►  ILMAM’s Optimal Board Program framework can help companies optimize their overall board work cycle, while considering the relevant drivers and trends