Implications for the Board
This domain covers three areas: Governance and Stakeholder Engagement, Strategic Planning and Organisational Alignment. It aims to equip non-executive directors to lead strategic boardroom discussions on actions to address climate change and its consequences. The content is guided by the WEF 8 climate governance principles published in 2019 on setting up effective climate governance on corporate boards. This domain contains reports and discussions on improving the board's governance, structure, and composition to address climate challenges and incentivize, supervise, and reward the executive team's efforts and actions in line with climate change corporate mitigation and adaptations plans and targets set.
Implications for the Board is the topic chosen for the fourth seminar of the Climate Governance Singapore to be delivered at the end of July 2022.
*For essential reading
Governance and Stakeholder Engagement
| *World | Principles and Frameworks for Climate Change Strategy and Action & A Climate Change Boardroom These toolkits contain details on climate governance and have been designed to provide a flexible resource for non-executive directors. |
Chapter Zero, Eden McCallum, The Berkeley Partnership, CCCE, 2020 |
| *World | How to Set Up Effective Climate Governance on Corporate Boards This document guides boards to develop a set of principles and questions to guide the development of a good climate. |
WEF in collab. with PwC, 2019 |
| *Singapore | Primer on Climate Change Directors’ Duties and Disclosure Obligations This report advises directors regarding the need for incorporating climate change, legal oversight, and supervision of the companies entrusted to director’s as well as disclosure obligations. |
CCLI, 2021 |
| World | Guidance on Board Effectiveness Financial Reporting Council The primary purpose of this guide is to stimulate boards’ thinking on how they can carry out their role and encourage them to focus on continually improving their effectiveness. |
FRC, 2018 |
| World | ICGN Viewpoint: The Board of Directors & Climate Change This document discusses how leadership in the boardroom could serve as a powerful agent for change in the way that companies reimagine their business in a net-zero world. |
ICGN, 2020 |
| World | Innovation and Corporate Renewal Also Disrupt Boards The research discusses how boards deal with innovation and disruption challenges. |
MGMT of Innovation and Technology, 2019 |
| World | Making Voting Count: How Principle-Based Voting on Shareholder Resolutions Can Contribute to Clear, Effective and Accountable Stewardship This paper is relevant to asset owners and investment managers with active and passive listed equity exposure, as well as to service providers who assist in the proxy voting process. |
PRI, 2021 |
| World | European Boards and Sustainability: Charting the Green Recovery This report discusses the road map to net-zero is the path to growth, redefining the board’s shared purpose, building a sustainability-savvy board, setting up for success and having a true believer as chair. |
Heidrick & Struggles, 2021 |
Strategic Planning
| *World | SOS 1.5: The Road to a Resilient, Net-Zero Carbon Future This report presents a holistic climate action framework to help all companies deliver on their responsibility to reach net-zero emissions. |
WBCSD, 2020 |
| *World | Science-Based Targets - Setting the Bar High Enough: The Case for Science-Based Targets on Climate Change This document contains a series of articles discussing the need for science-based targets on carbon emissions. |
Carbon Trust, 2018 |
| *World | 77 Industry Standards and the SASB Standards Application Guidance SASB Standards identifies environmental, social, and governance issues most relevant to financial performance in each of 77 industries available for download. These documents are designed to help companies disclose financially material sustainability information to investors. |
SASB |
| World | Corporate Net-Zero: We Need a More Sophisticated Approach This article discusses the drawbacks of a blanket adoption of corporate net zero and the need for building up climate resilience first. |
Ian Simm, 2021 |
| World | Climate Thematic: Governance, Reporting, Audit, Professional Oversight, Investors This report reviews and summarises the findings of the thematic review of climate-related considerations by boards, companies, auditors, professional bodies, and investors. |
FRC, 2020 |
| World | How to Set Up Effective Climate Governance on Corporate Boards This document guides boards to develop a set of principles and questions to guide the development of a good climate. |
WEF in collab. with PwC, 2019 |
| World | Vision 2050: Time to Transform This update of Vision 2050 defines what achieving the vision will look like in practice, outlines the transformation pathways and essential business actions that will drive progress over the next decade. |
WBCSD, 2021 |
Organisational Alignment
| *World | Remuneration Committee Update – Considering ESG and Climate Change This document presents the results of a Deloitte Academy session with over 250 clients and contacts on how remuneration committees can support wider board action on ESG and climate change. |
Deloitte, 2021 |
| *Asia | Combating Climate Change Through Executive Compensation This article discusses the role and implementation of executive incentives to accelerate the reduction in greenhouse gas emissions. |
WTW, 2020 |
| World | Corporate Governance in the Boardroom: A Practical Perspective This paper encourages boards to ensure that their governance, especially when looked at through the lens of reputation and resilience, has adapted to the high-pressure environment in which they operate. |
PWC, 2015 |
| World | Linking Executive Pay to ESG Goals The report discusses four key dimensions that remuneration committees need to weigh up when they decide how to help: internal and external targets, how to keep track of and measure progress toward those goals, what time frames to use, and how to determine success. |
PWC, strategy+business, 2021 |
| World | Investor Expectations for Paris-aligned Accounts The paper outlines the steps investors can be expected to take to drive Paris-aligned accounting. |
IIGCC, 2020 |
| World | Climate Targets, Executive Compensation, and Corporate Strategy This paper explains the case for corporate climate action, summarizes the use of climate-linked management incentives and presents a framework for understanding their benefits and design challenges. |
EPRG, 2020 |