Saakshe Jain, B.B.A. LL.B., Symbiosis Law School, Noida
ABSTRACT
This article explores the growing trend of environmental, social, and governance (ESG) considerations becoming mainstream in corporate decision-making, and the role of the board in this process. The authors argue that boards must take a proactive approach in integrating ESG considerations into the company's strategy, operations, and culture. This requires a shift from viewing ESG as a compliance issue to recognizing it as a business imperative that can drive long-term value creation. The article outlines key steps that boards can take to effectively mainstream ESG, including establishing clear governance structures, setting measurable goals, and engaging with stakeholders to understand their expectations and concerns. Boards can also consider incorporating ESG factors into their compensation programs, risk management frameworks, and reporting mechanisms. The authors suggest that boards that successfully integrate ESG considerations will be better positioned to create sustainable value for all stakeholders. They can also enhance their reputation, attract investors, and mitigate risks associated with environmental and social issues. The author suggests that boards that successfully integrate ESG considerations will be better positioned to create sustainable value for all stakeholders. In summary, the article highlights the importance of integrating ESG considerations into corporate decision-making and the critical role that boards play in this process. By adopting sustainable practices and considering ESG factors, companies can create long-term value for all stakeholders and contribute to a more sustainable future.
