The board's oversight of climate change

The United States National Association of Company Directors (NACD) has published a useful guide on board oversight of climate change.

Authored by the KPMG US Board Leadership Centre, the intent of the guide is to help boards establish and continuously improve their oversight of risk and opportunity as the impacts of climate change continue to evolve. There is a strong focus on delivering long-term value.

The guide reflects many aspects of the IoD's Four Pillars of Governance Best Practice including:

• Building board climate awareness and capability to understand the climate change implations and be able to interpet  climate-related metrics in a strategic context.
• Boards as organisational stewards taking a long-term view of  value, opportunities and risks.
• Joint board and management engagement on strategic opportunities, organisation-wide risks and transitional risks associated with climate change.
• Boards focusing on the business (or organistional) implications of climate change, and in doing so preventing politicisation within the board and across the organisation.
• As part of building board character and culture, setting the tone for consideration of climate change, including in organisational communications and taking an integrated approach across the organisation (rather than climate-related matters being siloed).
• Boards setting an example by continuing to be curious and learn about community expectations, the ongoing physical impacts and science related to climate change which will evolve over time.

The NACD is the host of the US arm of the Climate Governance Initiative, of which Chapter Zero New Zealand is also a member.