Skip to content

CS Professional · Environmental, Social and Governance (ESG) - Principles and Practice · Board's Accountability on ESG

Lotus Cements Ltd's board wants to link ESG to long-term value. Which step best integrates ESG into the board's role?

The board should embed material ESG factors into corporate strategy, enterprise risk management and performance targets, including management evaluation. This turns ESG from a standalone activity into part of long-term value creation and makes board oversight measurable and accountable.

  1. ATreating ESG as a separate annual charity exercise
  2. BIncorporating material ESG factors into strategy, risk management and performance targets, including executive evaluationCorrect
  3. CPublishing ESG policies without monitoring
  4. DAvoiding any ESG metrics to prevent scrutiny

Explanation

Integration means embedding material ESG factors in strategy, risk oversight and performance measures, which makes the board accountable for results. Publishing policies without monitoring, or treating ESG as charity, is not integration.

Did you get it right without looking?

One question tells you little. A timed set on Board's Accountability on ESG shows your real accuracy, how long you take and where you lose marks.

Practise Board's Accountability on ESGFree diagnostic mock

More Board's Accountability on ESG questions