SWIPRA Newsletter - Current ESG Topics for Boards and Managements
Hot ESG Topics for boards and executives to consider: are you ready?
Zurich, November 10, 2021 - We all are confronted with ESG topics, constantly, every day. But what is relevant for governance and deserves our attention? In this newsletter, we assess, qualify and comment on some of the current developments as well as expected challenges.
Boards and executives must understand how these developments, confronting their company from all sides, will eventually affect their organization’s business model and possibly require strategic transition:
- A siloed approach to ESG by just allocating sustainability to a non-strategic “ESG department” will no longer be sufficient,
- Companies must accept the challenging task of reconsidering the most fundamental aspects of their established businesses, and
- Companies will need to move away from the currently rather short-term view and constant benchmarking by allocating resources for their long-term success, even if this may lead to a negative short-term impact on revenues and profits.
ESG-related challenges and opportunities need to be assessed alike – making the topic possibly the most important aspect of modern-day boardroom practice. Directors need to understand in particular that ESG regulations locally and internationally are affecting their institutional shareholders who may, in turn, impact day-to-day corporate life and reputation.