The article, “2020 Vision,” published in the Spring 2020 edition of Equilar’s C-Suite Magazine, featured Russell Reynolds Associates Consultant Anthony Goodman. In it, he discusses upcoming governance trends based on our research, “2020 Global & Regional Corporate Governance Trends.” The article is excerpted below.
Since no single person is a reliable sage and all too many expert predictions end up in the trash can of history, I think it is more reliable to crowdsource the answer to the question.
Each year Russell Reynolds Associates interviews more than 40 global corporate governance professionals drawn from leading institutional investors, pension funds, proxy advisors and activist investors about what will be the major trends impacting corporate governance in the year ahead.
We have been running our global study for the last four years, and this year was the first in which environmental, social and governance (ESG) issues—and, in particular, the first two components—were the main global trend. The focus on ESG is going to be a major topic for both boards and management for the foreseeable future.
In the 2020s, boards will be expected to strengthen their oversight and knowledge of material ESG matters and disclose their connection to the business in the form of both risks and opportunities. This will require triple bottom line (people, planet and profit) thinking to be deployed throughout the management and board oversight processes. The Task Force on Climate-related Financial Disclosures (TCFD) and the Sustainability Accounting Standards Board (SASB) will become boardroom acronyms understood by all directors. Ensuring sustainable leadership at the top of the company will be a key priority.
To read the full article, click here.