Governance for Sustainability
CERES ROADMAP VISION
|Companies will embed sustainability from the boardroom to the copy room and will manage their entire value chain from a sustainability perspective.|
Companies that embrace good governance practice have always been better positioned to mitigate risks and capitalize on emerging opportunities. The same holds true when considering governance for sustainability. The systematic integration of sustainability throughout the business must begin with a comprehensive assessment of the chain of accountability.
This section looks at how companies are performing on key governance activities such as: board of director oversight for sustainability; management accountability; executive compensation links to ESG performance; and strength of sustainability policies and management systems.
- Board Oversight: 32 percent of companies’ (198) boards of directors formally oversee sustainability performance, up from 28 percent in 2012.
- Management Accountability: 42 percent (258 companies) demonstrate management accountability for sustainability, up from 39 percent in 2012.
- Executive Compensation: 24 percent (146 companies) link executive compensation to sustainability performance, up from 15 percent in 2012.
- Corporate Policies & Management Systems: 19 percent (114 companies) have strong sustainability policies and risk management systems, down from 26 percent in 2012.