We show that the group of firms with a strong sustainability culture is significantly more likely to assign responsibility to the board of directors for sustainability and to form a separate board committee for sustainability. Moreover, High Sustainability companies are more likely to make executive compensation a function of environmental, social, and external perception (., customer satisfaction) metrics. In addition, this group is significantly more likely to establish a formal stakeholder engagement process where risks and opportunities are identified, the scope of the engagement is defined ex ante, managers are trained.
