TheCorporateCounsel.net

Thompson Hine recently released its second annual survey of corporate ESG programs. The survey addresses a variety of issues associated with those programs.  Here are some of the highlights:

– The top current challenge for respondent private companies is Data Collection (20%) (but not Data Verification (only 2%)), followed by Green Initiatives and Staffing (12% each), and Talent Management/Human Capital and Regulatory Activity (10% each). Risk Management is also a concern (8%).

– Public companies report currently being most concerned with Green Initiatives (23%), followed by Data Verification (15%), Regulatory Activity (13%) and Talent Management/Human Capital (8%).

– Private company respondents reveal that their CEO usually has primary responsibility for ESG oversight (35%, compared to 31% last year). However, while 25% of public companies surveyed last year said their CEO had primary ESG responsibility, this year that number dropped to only 8%, with the Chief Sustainability Officer assuming that role 28% of the time.

– While the majority of respondent companies are not yet seeking ESG information or obligations through their contractual arrangements, 24% of private companies and 31% of public companies report they are doing so.

– 53% of respondent companies’ customers are not currently requiring them to report ESG information, but 34% of customers are asking for information on GHG emissions, 25% want DEI data and 21% are concerned about human capital.

Of course, the elephant in the room this year when it comes to corporate ESG programs is the looming adoption of the SEC’s proposed climate disclosure rules. That’s not lost on survey respondents – not only are 79% of public companies preparing to follow the mandates of the draft SEC rule, but so are 30% of private companies.

– John Jenkins