in the meantime Irish boards are committed to making positive ESG progress, but measuring progress remains a divisive issue. His quarter of Irish boards discuss her ESG at every meeting, but the overwhelming majority of boards do not link management compensation to her ESG performance.
A new report released today by professional services firm Diligent on behalf of Ireland’s Board of Directors (IoD) shows that 23% of Irish boards say they discuss ESG at all meetings, and 58% say they It adds that it monitors ESG issues. Now at executive level, up from 46% in 2021.
A poll was conducted among 270 respondents within the IoD membership. However, while ESG is now clearly on the board agenda, many companies are unsure of how they prioritize it. 47% currently have no KPIs to measure progress at all. On the other hand, the majority of organizations that have implemented his ESG KPIs say these measures are difficult to implement, with a total of 79% of Irish directors now reporting that ESG metrics are part of executive director remuneration. It says it’s not integrated.
The news comes at a difficult time for investor-company relations and could add further concern to private equity backers who have already warned management about ESG issues. There is a nature. Recent polls show that ties between his two camps have broken in recent months. A business leader cites his ESG drive as a cost-cutting measure amid the economic downturn, while saying investors are willing to divest from such companies.
Looking ahead, however, Irish directors appear to recognize this disconnect and the need to address it. He told researchers he believes it should be tied to other senior executive compensation. His 52% of executive directors agreed with this, and his 56% of senior managers agreed.
Caroline Spillane, CEO of IoD, commented: This new survey reveals how ESG is being considered by boards. Setting realistic and accurate KPIs to measure her ESG success or failure is critical to creating real traction and change in achieving her ESG goals. “
At the same time, many companies seem to recognize that ESG is central to their long-term business plans. When asked to select the areas of risk and compliance they would be most concerned about in the event of a crisis, 20% cited geopolitical issues as the top issue, and 19% cited climate disasters.
But the largest chunk, 22%, thought the most important thing was reputational damage. While this may seem ironic, it also suggests that these groups may be reluctant to scale back any of the ESG concerns listed.
Commenting on the study as a whole, Diligent Institute Executive Director said: function. With increasing pressure from regulators, investors and shareholders, directors and corporate leaders need access to tailored information to help them focus on what matters to corporate strategy. there is. “
