Stand-alone ESG committees mean higher sustainability

Companies with stand-alone ESG committees tend to have higher ESG scores, according to a recent study. The study, published by NN Investment Partners (NN IP) and governance services provider Glass Lewis, found that companies with this supervisory structure account for the highest proportion (28%) of companies in the top quartile of NN IP’s ESG Lens scores and have above-median ESG Lens scores generally. Although companies with below board committee oversight of sustainability also have 28% in the top quartile, this category only accounts for 15% of second quartile performers versus 36% for stand-alone committees. Overall, the highest proportion of above-median ESG Lens scores are registered at companies with specialized committees — whether at or below board level — to oversee sustainability performance. Read more