Is ESG Justa Compliance Issue?

• Position: BOARDBOOK: WHAT'S ON THE AGENDA?

In a recent survey of 400 directors, EY found that many directors view ESG largely as a compliance matter, rather than a strategic opportunity. Slightly more than half of directors surveyed said they are considering ESG issues only because compliance, disclosure obligations and shareholder pressure compel them to do so.

EY also found that the challenges to enhancing ESG oversight are significant:

* Directors are confident about shareholder expectations when it comes to governance but are less so in regard to environmental and social factors.

* Understanding which ESG issues are material to...