EDITORIAL: SUSTAINABILITY MATTERS

The extreme heatwave in the UK last month acted as a reminder of the role businesses need to play in order to alleviate the challenges of climate change. If we are to reach net zero by 2050, action needs to be taking place now - in other words on the watch of board members today. There are also growing calls from investors, regulators, customers and other stakeholders for more information on how companies are considering environmental, social and governance (ESG) issues, particularly in relation to climate change. 

As one of our articles this month, specially written for the FT Board Director Programme by Andy Davies of global recruiters Kingsley Gate Partners points out, this increasing focus on ESG issues can present opportunities for people who have relevant experience and expertise when looking for non-executive director roles.

A recent study by PwC revealed that only 30 per cent of listed companies worldwide had a formal Chief Sustainability Officer or equivalent in 2021, which emphasises the important role the board has to play in shaping ESG performance and communication of its policies to stakeholders. The board's input on ESG matters is likely to be particularly critical to the company's financial performance.