DS2154 CGR Highlights 2020

Key highlights

Where do you stand?

Purpose power

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Find out the latest best practice trends in corporate governance

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measure the impact of their corporate purpose

Just 6%

82% articulate a purpose beyond profit, but for that purpose to truly help set the guiding principles of a business, there needs to be a greater understanding of how it will impact wider stakeholders.

Know your culture

give no information about sources they use to assess culture

51%

Less than half of companies clearly explain how they evaluate their culture, with just 3% of those using three or more metrics to assess how culture is embedded at the heart of their business.

An issue of succession

give no insight into their succession plans below their executive board

82%

New ways of working will require new skills, tackling emerging risks will require new perspectives. Those won’t just appear in the boardroom. They need to be developed up through the business.

have had their chair on the board for more than nine years

25%

Beyond the shareholders

provide detailed section 172 statements

38%

While 77% of companies are providing section 172 statements, the detail is missing. This is especially true when it comes to the long-term effect of board decisions, with only 4% providing any detail on stakeholder impact.

Risky business

state how they mitigate emerging risks

30%

Although 89% discuss emerging risk, the focus for most is on the procedures and processes used for identification. Real value comes from outlining what the emerging risks are and how they will be managed.

Not easy being green

say environmental risks are a principal threat while only…

27%

Mitigating the threat of environmental risks will require decisive action and lasting change. Expecting that to happen without clear links to long-term executive incentives is ambitious at best.

use climate change or other environmental metrics in executive remuneration

10%

On board

provide good or detailed explanations of board evaluation, but only…

51%

give sufficient detail on outcomes

46%

Preparing for where you’re going means being honest about where you are. Of the 46% of companies boldly discussing where they could improve, the major area boards believe they need to give more time to is strategy.