While ESG continues to face backlash on the political front, this is still a strong demand for sustainability from investors. For example, recent research from Ernst and Young (EY) found that sustainability experience at the board level in Europe has increased over the last six months as companies respond to investor demand. The latest EY Boardroom Monitor found that 32% of companies currently have board directors with professional experience or expertise in sustainability. While that figure may seem low, it’s a big jump from EY’s Boardroom Monitor in June, when only 19% of boards monitored listed sustainability expertise. The jump in experience corresponds with EY’s research that showed sustainability was a dealbreaker for investing for a majority of investors. Over fifty percent (51%) of investors said boardroom experience in sustainability has a ‘significant’ impact in terms of making a company an attractive investment. Twenty-two percent went further, saying it has a “highly significant” impact on a company’s investment case. Other findings from EY’s research revealed that sustainability experience is much more prevalent among female board members. While the current gender split in financial services boardrooms is 58% male and 42% female, 72% of board directors with experience in sustainability are female.
Finsum:According to research from Ernst and Young, sustainability experience in the board room jumped from 19% in June to 32% as companies respond to investor demand.