Investors and directors disagree on climate priorities: PwC
A wide disparity exists between company directors and investors on key issues, particularly those relating to climate change and sustainability, according to a report from PwC’s Governance Insights Centre. Of directors responding to the survey, 42% said they would not need to change their firm’s strategy over the next three years due to environmental factors, while 40% claimed climate change should not play a role in strategy and 29% made similar comments in relation to resource scarcity. This contrasts with shareholder views; the 2017 proxy season saw support for environment-focused shareholder proposals reach 32%, up from 24% in the previous year.

In 2022, as both the ongoing direct impacts and unexpected side effects of the COVID-19 pandemic continue to mount, the landscape of the business world is shifting yet again. An ongoing war in Ukraine, rising global inflation, fears of recession and the near-constant drumbeat of catastrophic environmental news and predictions are changing the geopolitical context. In the US, market turmoil, social upheaval, political polarization, looming midterm elections and uncertain regulatory developments make the landscape feel like uncharted territory. When the path is uncertain, boards are a source for constancy and guidance.

As shareholder and consumer expectations rise, our 2022 Annual Corporate Directors Survey shows that board oversight and board practices are shifting in response as directors navigate this new governance landscape.

Download the report