Insights

Primer on Climate-related Directors’ Duties

Climate change presents material, financial and systemic risks to corporations and their investors, leading to serious implications for the duties of directors and officers, and potential disclosure obligations for companies.

The Primer on Climate Change: Directors’ Duties and Disclosure Obligations provides an overview of the foreseeable financial and systemic risks (and opportunities) over short, medium and long-term investment horizons. Covering 31 countries and the EU, it outlines the general climate obligations for board directors, and how company law and directors’ duties require directors to incorporate climate change into their strategies, legal oversight, and supervision of the companies entrusted to their care.

Philippe Reich and Corinne Nacht-Vogel contributed the Swiss perspective to this international project of the Climate Governance Initiative and Chapter Zero Switzerland, an initiative of the Board Foundation.

Other Insights from this theme

  • Board News

    The Swiss Institute of Directors Partners with the Chartered Governance Institute

  • Board Views

    From Corporate Governance of Sustainability to Sustainable Corporate Governance

    What is the best way to integrate sustainability into the corporate governance framework? Boards of directors have chosen two distinct paths: the functional way, which focuses on corporate governance of sustainability, and the foundational approach, which leads to sustainable corporate governance. This article assesses the merits and limitations of both approaches and calls for a transition to sustainable governance. This requires board members to engage regularly with stakeholders and to continuously debate the underlying assumptions to further develop the governance framework as required.

  • Board Views

    The Multipurpose Corporation as a Driver for Sustainable Value Creation

    The nature of the debate on the role of business in society strongly suggests a cyclical nature, with constant attempts to balance different interests and perspectives. To overcome the illusion of solving this conundrum, this article proposes an alternative approach, multipurpose capitalism. It posits that companies should compete not only on their products and services, but also on their different purpose profiles. It is left to consumers, workers, and investors to decide where to shop, work, and invest. The article offers a framework and methodology to create a comprehensive ecosystem that enables this matching process and suggests ways to overcome the challenges along the way.

  • Board News

    Board Foundation Chair to Join the ICGN Global Governance Committee

  • Board News

    The GNDI Global Director Report 2023 Published

  • Board Views

    The Board as Driver of Sustainable Change

    Responsibility is key to good governance. The article links corporate citizenship with innovation, urging boards to support social impact.

  • Board Views

    Striving for Excellence in Venture Governance

    The contribution of the venture board to entrepreneurial value creation, and its pivotal role in venture ecosystems, is often overlooked despite a long history of venture governance. History teaches us six principles of excellence in venture governance.

  • Board Views

    The Promise and Perils of Agile Governance

    Agility as a leadership principle has gained enormous importance in recent years. Many companies proclaim agility as a new leadership culture that is better aligned to future opportunities and challenges. At the same time, companies must adhere to corporate governance principles, some of which conflict with agility principles. This article presents considerations for improving the compatibility of agile leadership principles with the principles of effective corporate governance.

  • Board Views

    From Corporate to Ecosystem Governance

    Mastering ecosystems is increasingly seen as key to strategic value creation in highly dynamic environments. The role of governance has become a key differentiator between organizations that win or lose from the ecosystem game. This article discusses the importance of governance to the successful creation, development, and growth of ecosystems and presents eight challenges to be addressed along the ecosystem lifecycle. It continues with a taxonomy of ecosystem governance that provides a menu of effective governance mechanisms to address these challenges. The article concludes with advice on how best to manage the transition from a corporate governance to an ecosystem governance focus.

  • Board Guides

    Guidelines on the Corporate Governance of Climate Change and Biodiversity

  • Board Guides

    Guidelines on the Corporate Governance of Startups

  • Board Guides

    Guidelines on the Corporate Governance of SMEs