Samil PwC Publishes Sustainable Management Oversight Guide for Board of Directors

Corporate Sustainability Requires Board Responsibility and Strategic Approach
Collaboration Between Board and Management is Key to Sustainable Management

Samil PwC's Governance Center published "Governance Focus No. 26," a guide on sustainable management oversight for boards of directors, on the 15th. This report details the role that boards should play in establishing and implementing corporate sustainability strategies. The full report can be accessed on the Samil PwC website.

According to the report, as sustainability disclosures become mandatory in major countries such as Europe and the United States, the inclusion of sustainability elements in corporate strategies is increasing. A survey by the global accounting and consulting group PwC found that 78% of investors believe companies should incorporate ESG (Environmental, Social, and Governance) into their strategies, while 54% of corporate directors already consider ESG to be linked with their strategies.

With growing interest in the role of the board, the report emphasized that boards must decide whether to establish a dedicated committee for effective sustainable management oversight, assign this responsibility to an existing committee, or have the entire board take charge. It specified that audit committees are responsible for key areas such as disclosure and public communication, but strategic responsibility and execution discussions are more suitable for the full board or an independent sustainability committee.

The interaction and allocation of responsibilities between the board and management are also important factors. According to PwC's survey, investors regard the management of sustainability-related risks and opportunities as highly significant in their investment decisions. 69% of investors responded that they would increase investments in companies that successfully manage these issues. The report stressed that "the regulatory environment is rapidly changing, requiring swift preparation," and urged boards to actively allocate appropriate resources and attention to corporate sustainability.

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