Samil Accounting "45% of US Companies Regularly Discuss ESG as a Board Agenda Item"

[Asia Economy Reporter Jihwan Park] The proportion of U.S. companies that regularly address ESG (Environmental, Social, Governance) as a regular agenda item at board meetings has reached 45%.

On the 6th, Samil Accounting Corporation's Audit Committee Center introduced specific points that boards should focus on when overseeing corporate ESG aspects through the recently published 13th issue of Audit Committee and Governance.

As uncertainty increases due to the COVID-19 pandemic and economic recession, institutional investors are placing greater emphasis on creating long-term and sustainable business models. According to survey results, the proportion of corporate directors who identify ESG as a priority agenda for management has also increased. This is analyzed as a judgment that ESG can be both a risk factor to manage and an opportunity for companies.

In particular, while recognizing that overcoming current crises such as the economic recession is the top priority for companies, boards believe these crises can serve as opportunities to reset corporate operational strategies and goals from a broader and longer-term perspective. The report explains that this aligns with the interests of institutional investors who emphasize the long-term sustainability of companies when investing.

The Samil Audit Committee Center emphasized, "Corporate crises can be an opportunity to strengthen the role of the board through enhancing expertise, improving work practices, and redefining priorities."

It also advised, "In performing ESG oversight to enhance a company's long-term sustainability, it is necessary to verify whether the company generates reliable ESG information and discloses it correctly, linking this to the company's goals and operational strategies."

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