Following the unprecedented momentum behind ESG in 2022, expectations have been raised around how companies address climate change, diversity, equity and inclusion issues and other social challenges.
Rising demands for action will likely increase pressure for more accountability, regulatory scrutiny and the backings behind this, such as data and frameworks which a company must adhere to.
Companies are now on the main stage, watched on by investors, research and ratings firms, activists, employees and regulators – all fundamental to the business. And like any company, a strong and stringent policy must be implemented and led from the top-down, therefore a director’s role can be a perilous one, if they are not prepared.
This growing momentum behind ESG means tighter regulation, scrutiny and reputational risk.
In this Investment Week article, Bruce Hepburn, chief executive officer at Mactavish, alerts businesses to the importance of reviewing their D&O cover, evaluating policy wordings and exclusions and ensuring it is fit for purpose.