Odgers Berndtson: Corporate Governance & Climate Change
Board members can help companies develop an integrated strategic approach to addressing climate change risks and opportunities. To achieve efficiency in today's world, boards need to add a suite of expertise onto their boards—responding to new enterprise risks, business complexity, technological disruptions, and social and environmental obligations.
Thinking about climate change mitigation and climate change risk is now part of the Director’s job. In previous decades, board members often considered climate change separate from the daily imperatives of their organizations and the scope of their obligations as directors—and many directors still subscribe to this view. But if climate change is going to impact where people live, what they eat, how they work, and what business models remain viable, then directors have both a moral and a fiduciary duty to integrate climate change into their strategic and oversight responsibilities.
Topics discussed in this article:
- Climate Change Risk: Physical, Transitional and Compliance & Disclosure risk.
- Building Effective Climate Governance
- How to Build Effective Climate Governance: Education, Diversity, Advisory boards and Climate and ESG related risk committee.
- Eight Guiding Principles