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.|
Check out the Roadmap in Action section for examples of how companies are implementing the Governance expectations of the Ceres Roadmap.
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.
HOW ARE COMPANIES PERFORMING?
In The Road to 2020: Corporate Progress on The Ceres Roadmap For Sustainability, we evaluated 600 of the largest U.S. companies on their progress towards meeting the expectations laid forth in the Ceres Roadmap for Sustainability. Using data gathered by Sustainalytics, 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.
Overall, the results show there is room for improvement by companies across all sectors. Only 26 percent of the companies evaluated—157 companies—were included in Tiers 1 and 2 for their efforts to integrate sustainability into governance. The Utilities and Materials sectors had the strongest performance results overall, followed by Industrials and Oil & Gas Producers. This is not particularly surprising given that these sectors face significant social and environmental exposure, requiring considerable investment in risk management processes. Nevertheless, with more than 50 percent of the 600 companies (354) evaluated falling in Tier 4, far more work is needed to integrate sustainability into overall corporate accountability systems.
For a deeper analysis of how certain sectors are performing against the Ceres Roadmap, please visit the Sector Performance section. There you will find a customized look at the performance of the following sectors: Autos & Transportation, Electric Utilities, Financial Services, Food & Beverage, Footwear & Apparel, Oil & Gas Producers, Retail, Technology Hardware, Technology Software & Services.
The following graph represents the overall results of performance on the governance for sustainability expectations, which include: board of director oversight for sustainability; management accountability; executive compensation links to environmental, social and governance (ESG) performance; and strength of sustainability policies and management systems.
Click on a performance tier below to view more information about how companies are performing on governance for sustainability. To view data on other governance expectations, click the links to the left.
Filter by Year
Filter by Sector