54% of FTSE 100 firms have ESG board committees

Over half of FTSE 100 companies now have a board-level committee focused on ESG (environmental, social and governance). 

An ESG committee is set up to help companies reach net-zero goals and other sustainability KPIs. 

Companies with better ESG credentials are more likely to qualify for ESG-focused funds, raise their liquidity, and increase their stock price.

“If you are a FTSE 100 company without an ESG committee at board level then you are now in a shrinking minority.”

FTSE 100 companies are required to have audit, remuneration, and nomination committees, but not environmental, social, or governance committees. Despite this, 54% of FTSE 100 companies have set up an ESG committee.

“FTSE 100 companies are taking big steps towards addressing their responsibilities on ESG. UK plc is showing its commitment to tackling climate change and reducing its impact on the broader environment,” says Maria Hughes, director at Mattison Public Relations which carried out the research. 

“If you are a FTSE 100 company without an ESG committee at board level then you are now in a shrinking minority.”

According to Mattison, it appears that large US companies are moving less quickly than their UK counterparts. 

A study conducted by Deloitte found that only 13% of S&P 500 companies assign primary ESG responsibility to ESG/sustainable committees, while 7% entrust ESG to the board as a whole.

According to the Mattison research, every FTSE 100 oil and gas company, including BP Plc, Shell Plc and BHP Group Ltd., operates an ESG committee.

Of the 54 FTSE 100 companies with ESG committees, 56% are made up exclusively of non-executive directors. The Mattison report suggests that corporate ESG performance can be improved by using this approach.

Mattison Public Relations claims that the research highlights how ESG is rising up the corporate agenda, with FTSE 100 firms also having to align to the UK Corporate Governance Code.