Driving sustainable business practices in companies requires involvement from boards of directors. And there is some evidence that sustainability is rising up the board agenda. Many board members today have the right aspirations, but there is a substantial gap between those aspirations and the capacity of their boards and firms to deliver.
How Board Members Really Feel About ESG, from Deniers to True Believers
“Get the board of directors on board” is increasingly recognized as key to driving sustainable business practices in companies. But there is a substantial gap between aspirations and the capacity of their boards and firms to deliver on ESG issues. To better understand this gap and the frequency and depth at which sustainability is discussed during board meetings, we spoke to 25 experienced European non-executive directors representing 50 large, well-known companies. In return for the promise of anonymity, they were refreshingly frank in their feedback. Unsurprisingly, we encountered a wide range of individual attitudes—from out-and-out skepticism to fervent belief. Further analysis revealed five distinct archetypes of behavior, reflective of how board members react to sustainability: The Deniers; The Hardheaded; The Superficial; The Complacent and The True Believers. While we observed a tendency by directors to gravitate towards companies where they would be surrounded by the same type (‘birds of a feather flock together’), many found themselves on boards where members had very different ideas on how sustainability fits with their business principles and strategy. Thus, we identified strategies to help those directors eager to push for attention to sustainability.