According to this new report: "SYSTEMS RULE: How Board Governance Can Drive Sustainability Performance" from Ceres/KKS Advisors, which analyzes how Forbes 500 boards oversee sustainability, 39% of companies have a formal mandate for sustainability at the board level - either through a dedicated sustainability committee or inclusion of sustainability oversight responsibilities in another board committee's charter, with a dedicated CSR Committee being the most common approach:
Which board committee has responsibility for sustainability?
- Corporate Social Responsibility: 25%
- Nom/Gov: 18%
- Environmental, Health and Safety: 14%
- Public Policy: 13%
- Sustainability or Sustainable Development: 13%
- Risk, Regulatory or Compliance: 6%
- Social & Ethics: 5%
- Audit; Quality & Technology - each 2%:
- Executive; Strategy; Compensation - each 1%
An additional 23% of Forbes 500 boards don't evidence formal sustainability oversight (e.g., there is no committee with formal responsibility), but the board receives regular sustainability updates.
The report's coverage - which is based on the public disclosures of 475 of the Forbes 500 - includes benchmarking data on board composition and executive compensation incentive practices, and specific recommendations for enhanced board oversight.