This article asks if your board is an ESG leader or follower?
As most privately owned companies do not have a board of directors, let’s broaden the statement to say…
-“Are those that you turn for advice knowledgeable on sustainability/ESG, and capable of providing you with sound guidance?”
We know:
- Consumers, B2C clients, workers, governments, lenders, your community, your family and investors, are all expecting you to demonstrate the steps you are taking to show you are environmentally sustainable and promote diversity and equality;
- If not already faced with this, your company will soon be required to report on its Scope 1, 2 and 3 emissions;
- Lenders are incorporating sustainability into their pricing and you will pay more if you are not certified sustainable;
- Prospective employees may take a job with you short term, but the majority of them will continue looking if you are not certified sustainable and have an acceptable ESG program;
- Clients will move their business from you to certified sustainable options when they find them;
- Insurance carriers can rate you as a higher risk if you are not certified sustainable;
- Potential buyers/investors in your company will value you higher if you are certified sustainable;
- Companies that are certified sustainable via a globally-respected program are growing 75% – 20x faster than their non-certified peers;
- Companies that are certified sustainable via a globally-respected program are enjoying +24% Net Income and +11% EBITDA versus their non-certified competitive peers.
Are your advisors able to help you understand and navigate these matters?
If not, consider adding an advisor that has this knowledge and can counsel you on same.