How Robust Is Your Climate Governance?

During the past few years, as evidence of climate change and its effects has mounted, many corporate boards have added climate governance to their agendas. But the maturity of boards' climate-oversight processes and activities varies widely. To better understand how climate issues are being handled in the boardroom and to determine what good climate governance looks like in practice, the authors interviewed 20 directors who hold leadership positions on the boards of S&P 500 companies. Drawing from those interviews and other research, they identify eight hallmarks of meaningful climate oversight. For example, "the board is knowledgeable about the company's climate profile," "the board has the expertise needed for effective climate oversight," and "the board can articulate the company's climate positioning and strategy." The authors also offer their perspective on the set of issues associated with each hallmark that corporate leaders must grapple with as they decide how to incorporate climate issues into their company's governance. Climate concerns are here to stay, and climate governance will increasingly be seen as a core element of good governance. [ABSTRACT FROM AUTHOR]