Video: ESG - The Role of the Board

Navigating ESG Risk Management and Reporting: Our ESG Video Series

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FTI Consulting’s Managing Director Shane Murphy discusses the changing role of the Board in strategically prioritising ESG risks alongside financial risks.

The role of the Board and company leadership is changing. Companies are now expected to expand their priorities beyond maintaining traditional financial and strategic efforts.

Leadership taking more proactive approach to ESG
According to FTI Consulting’s Resilience Barometer, 84% of Australian business leaders are shifting their approach to ESG from just managing risk to identifying new business opportunities.

Addressing ESG aspects with both disclosure and actions is now crucial to maintaining access to capital and a premium valuation. Investors look for clear and detailed ESG disclosures, together with meaningful and measurable ESG strategies that consistently deliver improvements over time.

For Boards, that means incorporating ESG risk management into their business-as-usual. Boards should drive:

ESG oversight
Progress on goals
Transparent reporting.

They should subject ESG-related policies, strategies and information to the same governance, processes and controls that are used for financial information. 

So, the role of the Board has now expanded to managing ESG risks with the rigour applied to financial risks.

The views expressed herein are those of the author(s) and not necessarily the views of FTI Consulting, Inc., its management, its subsidiaries, its affiliates, or its other professionals. FTI Consulting, Inc., including its subsidiaries and affiliates, is a consulting firm and is not a certified public accounting firm or a law firm.