The past year has tested the resolve of even the most committed climate champions in the boardroom. But WTW's latest article discusses why boards must stay the course.
Economic headwinds, geopolitical tensions, and what some call ‘green fatigue’ might tempt boards to pause efforts on climate governance. Extension of climate disclosure timelines in some jurisdictions might even seem to provide cover for such hesitation.
But this would be precisely the wrong time to waver.
Progressive boardrooms around the world aren’t just following regulatory disclosure minimums. To them climate governance isn’t a compliance theatre, it’s about survival and gaining a competitive advantage.
WTW's article discuss five key stewardship principles that should anchor any board’s approach to climate governance. Shai Ganu (Global Leader, Executive Compensation, and Board Advisory) discusses how:
- ESG is a core business strategy about how companies earn their profits, not a charitable activity like corporate giving.
- Climate science is irrefutable, and complex systems don't decline gradually — they hold steady and then collapse suddenly at tipping points.
- As natural assets gain legal personhood in some jurisdictions, nature-related risks are becoming direct legal and financial business risks.
- Physical climate events are already hitting balance sheets through production losses and write-downs, while transition risks are simultaneously reshaping valuations and competitive advantage.
- Boards that use any regulatory breathing room to strengthen climate governance and embed it into strategy will be far better positioned than those who treat extended deadlines as a reason to slow down
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For full expertise of these points, follow the link here.
About WTW:
Willis Towers Watson (WTW) is a global leader in advisory, broking, and risk management solutions. With nearly 200 years of experience and 45,000 employees in over 140 countries, WTW helps businesses turn risks into growth opportunities by providing tailored solutions for intricate risk profiles. WTW’s offerings, including professional liability, D&O insurance, cyber risk, and M&A-related insurances, directly address the risks and challenges faced by today’s NEDs. NEDA are proud to be working in partnership with WTW.