The role of U.S. public boards in managing environmental, social, and governance (ESG) issues has evolved significantly over the past five years. Initially, the board was largely unprepared to address the material financial he ESG topic, lacking the necessary background and qualifications. However, recent trends indicate a positive change, with the percentage of Fortune 100 board members holding relevant ESG credentials rising from 29% to 43%. This increase is mainly related to environmental and governance qualifications, with less growth in social qualifications. Despite this progress, significant gaps remain, particularly in expertise on climate change and worker welfare. In particular, the establishment of dedicated ESG/sustainability committees has proliferated, facilitating better oversight of sustainability issues. This shift is critical as companies increasingly face both regulatory pressures and strategic opportunities in the transition to a low-carbon economy.
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