Shaping the board’s strategic direction on climate
We are in a decisive decade to accelerate action against climate change. Choices made over the next decade will impact the world for centuries to come. Board members have stewardship obligations that include taking action to address climate change within their organization and beyond.
To understand how boards are meeting the challenges posed by climate-related issues, we recently conducted a series of interviews with global board members to understand how they are approaching and integrating this into their operations. The videos below look at recent changes, director capabilities and board structure, reporting and compliance, risk and liabilities and emerging trends.
Over the past few years, boards have had a key role integrating climate change into strategic planning and streamlining operations to comply with emerging international sustainability standards. Watch this discussion to learn more about how board directors address sustainability during times of accelerated change.
Board directors should understand not just climate risks and compliance, but also view climate change as a business opportunity to shape strategic initiatives, weaving sustainability into all board operations. The directors discuss the benefit of targeted continued education to enhance understanding and integration of climate issues.
Companies are striving to manage risks while transitioning to sustainable practices in a complex compliance landscape. In this video, board directors discuss how boards are focusing on new sustainability disclosure requirements and the importance of integrating these considerations into financial strategies, as well as the benefits of harmonization of global sustainability standards.
The potential of litigation due to climate transition requires boards to identify, manage, and incorporate climate risks into their overall strategies and decision-making processes. Boards are also required to balance the diverse needs and expectations of stakeholders, including those prioritizing returns and others advocating for sustainability. Boards must strive for increased transparency and foster innovation, while carefully managing data quality risks.
To manage transitions effectively, fostering an open-minded culture in the boardroom is vital. Decision-making should take into account systemic implications for key stakeholders and the value chain. Going forward, board directors should consider climate mitigation, adaptation, and finance, with special attention devoted to biodiversity preservation and ensuring a just transition.
The Chairperson’s Guides Series
Deloitte, in collaboration with the World Economic Forum as a strategic partner and the Climate Governance Initiative, is proud to equip chairs and board directors with the knowledge to lead organizations towards a sustainable future. Each guide tackles a different element of the journey, outlining key risks and opportunities, as well as key questions for boards.
The Chairperson’s Guide to Integrity
Trust and integrity are at the core of human interactions and relationships—and business is no different. Environmental challenges are increasingly the focal point of gaining stakeholder trust, with expectations rapidly evolving in scope and intensity. As company stewards, board members have the responsibility to stay informed of the growing stakeholder expectations of their organization’s climate and sustainability practices.
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The Chairperson’s Guide to Valuing Nature
Although all business depends on nature, businesses have historically undervalued and overlooked nature, leading to its degradation. Published by the World Economic Forum in collaboration with the Climate Governance Initiative and Deloitte, The Chairperson’s Guide to Valuing Nature explores the risks of nature’s degradation and opportunities of restoring nature.
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The Chairperson’s Guide to a Just Transition
The just transition is both a principle and process that aims to address the fact that climate-driven economic change may disrupt, transform, or eliminate entire industries, workforces and professions. A just transition is not a ‘nice-to-have’ or a discretionary extra–it is a critical part of enabling change to occur.
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The Chairperson’s Perspective
Climate change is a global emergency. One that will impact every person on Earth, and a challenge which will require collaboration across the public, private and financial sectors to address. Business leaders play a crucial role in the transition to a net-zero economy and are uniquely positioned to leverage their resources to collaborate and innovate on sustainability solutions across industries and disciplines.
Deloitte collaboration with the World Economic Forum and the Climate Governance Initiative
The Climate Governance Initiative (CGI) is driven by a community of Non-Executive Directors focused on making climate a boardroom priority, building on the World Economic Forum’s Principles for Effective Climate Governance
Join a Chapter: Find and contact your local CGI Chapter to join our growing network.
