The Good Governance Academy endorses courses like the “ESG for Boards” programme that align with our focus areas and maintain the highest international standards. This endorsement programme ensures that the promoted courses are assessed against specific criteria, aligning with the UN’s sustainable development goals of collaboration and quality education. The aim is to promote courses that equip board members with the necessary knowledge and understanding of business-critical issues, such as ESG, to ensure they meet global best practices.

ESG is no longer just about adhering to rules and regulations. It has evolved into a critical investor tool for evaluating a company’s long-term viability and potential for creating value. Integrating ESG as a core value and a long-term growth driver, rather than a separate issue, is essential for developing a truly purpose-driven ESG strategy. This shift in mindset allows companies to create value for society, respect workers and human rights, and ensure solid governance, ultimately leading to sustainable growth and financial returns that appeal to investors and other stakeholders.

The programme educates board members on current and emerging global and national trends related to investor perspectives, stakeholder expectations, and regulatory requirements. By focusing on best practices for incorporating ESG into board-level discussions, it helps boards create a long-term vision for sustainable business practices, aligning ESG goals with the overall corporate strategy. The programme features insights from investor communities, such as the Norwegian oil fund, to explain their expectations and the link between ESG and financial returns. It also addresses evolving regulations and corporate governance codes, preparing directors to navigate the complexities of the ESG landscape.

The programme primarily focuses on cultivating a mindset shift from solely prioritizing shareholder value to considering the broader stakeholder picture. It encourages directors to be mindful of the interests and impact on a wider range of stakeholders. While specific skills are important, the programme emphasizes the need for directors to develop integrated thinking and a perspective that considers long-term value creation alongside financial reporting. Recognizing that no single board can possess all necessary expertise, the programme highlights the importance of asking the right critical questions and effectively assessing management’s responses, even if specialized knowledge requires seeking external advice.

The programme emphasizes the need for continuous and in-depth dialogue between the board and the management team regarding ESG matters. Given that management often possesses more detailed information on ESG issues, the programme underscores the importance of management ensuring that boards have the relevant information for informed decision-making. It encourages a more frequent and potentially more hands-on approach from the board in engaging with ESG strategy, moving towards a collaborative dynamic where both board oversight and management execution are aligned.

The programme aims to demystify the “alphabet soup” of ESG reporting frameworks by explaining their underlying intentions and significance. It emphasizes the move towards integrated thinking, as exemplified by the integration of the Integrated Reporting Council into the ISSB, aligning ESG reporting more closely with familiar financial reporting standards like IFRS. The programme invites experts from bodies like the ISSB to provide updates and clarity on the evolving landscape. While board members are not expected to know all the technical details, the programme equips them with the foundational understanding to engage meaningfully with these frameworks.

The programme underscores the need for boards to acknowledge the existence and impact of various stakeholders on the company’s performance. It highlights how different stakeholder groups, such as employees and customers, can be affected by and influence the company’s actions and reputation. The programme encourages boards to define their key stakeholder groups and consider diverse perspectives, potentially through board composition that reflects different ages and backgrounds. It emphasizes that effective stakeholder communication starts with being mindful of external trends and the concerns of various groups, ensuring the board is informed about the impacts of their decisions.

The programme is designed to be dynamic and continuously evolving, with its curriculum and speakers updated regularly to reflect the latest trends, regulatory changes, and emerging challenges. It avoids a fixed curriculum, instead focusing on bringing in diverse perspectives from regulators, investors, and board members themselves. The programme encourages ongoing participation through annual licenses, allowing board members to continuously update their knowledge and access new materials. This commitment to staying at the forefront of ESG developments ensures that board directors are equipped with the most current and relevant insights.