Tag: ESG
New study is described as the first to focus on “the black box of board processes” New study is described as the first to focus on “the black box of board processes” New study is described as the first to focus on “the black box of board processes”
Boards that demonstrate good risk oversight practices and policies are associated with better environmental and social performance (E&S), according to a joint study by INSEAD and the University of Pennsylvania.
Researchers found that boards with robust risk oversight practices were more likely to incorporate E&S considerations into corporate strategy and executive pay design, resulting in better E&S performance and outcomes - based on sustainability data provided by Thomson Reuters and Truvalue Labs.
However, as the study points out, recent surveys indicate that the majority of directors question whether E&S issues actually represent significant risks and report that corporate boards do not have a strong understanding of the impact of E&S issues on their companies.
The study is billed as first to delve into “the black box of board processes” by measuring the extent of board-level risk reporting, understanding and communication; and examini…