The Board of Directors is responsible for integrating environmental, social and governance (ESG) factors of material value or risk into the long-term strategic objectives of the Company as well as monitoring the Company’s corporate social responsibility initiatives and the integration of ESG principles throughout the Company, including diversity.
The Board of Directors is also responsible for laying a strong foundation of accountability for Management in the execution and achievement of corporate priorities and long-term strategies. Integrating ESG matters into corporate governance practices can be viewed as part of the fiduciary duty of the Board of Directors. This includes ensuring that all material risk factors, including ESG matters, are managed and that there is ongoing organizational understanding and ownership of their business impact.
The Board of Directors understands the link between ESG matters and long-term company value. They are discussed at Board of Directors meetings and, moreover, in the context of board succession, the Board of Directors will look for the right mix of knowledge and experience to enable constructive contribution to ESG discussions and oversight.