ESG: Is It the New Board Game?

“What we’re really talking about is being responsive to the interests of an institutional investment community,” says Gaby Sulzberger, General Partner, Rustic Canyon/Fontis Partners, “and that’s true whether you’re a public company or a private company.” Sulzberger is talking about why ESG concerns are suddenly a focus for investors and an essential strategy for firms. About a third of global assets under management (AUM), Sulzberger says, factors sustainability into its investment decisions. In a new episode of CEO Perspectives, The Conference Board President and CEO Steve Odland sits down with Sulzberger to discuss all things ESG. Tune in for insights on:

The new focus on sustainability: Environmental, social, and governance issues used to be treated separately by companies, but the broad focus of portfolio managers on corporate social purpose has ended this “Balkanization.” The importance of ESG to talent: Investors aren’t alone in demanding more corporate social responsibility. Employees want to work for companies that take ESG issues seriously. The increasing importance of board diversity: Despite gains, the number of women and racial minorities on boards remains low. Sulzberger: “It’s not an intent to exclude, but it comes from a lack of interest to include.”