Global Summit 2021
Climate change is on the global agenda like never before. Before the Covid-19 pandemic shook the world, we knew that our ways of doing business were unsustainable but it took society grinding to a halt for us to see how imperative it is for companies to collaborate, innovate and adapt to a more sustainable future.
In March 2021, the Climate Governance Initiative hosted its Global Summit – bringing together business leaders, financial experts and academics to discuss the ways in which company boards can push for climate action. Over the five days, a range of speakers shared ideas for, and experiences in, decarbonising business and the ways in which everyone from non-executive directors, to CEOs, to employees can be engaged in the collective fight against global warming.
Read the session summaries from the Global Summit 2021 as categorised by the World Economic Forum’s principles for effective climate governance:
The board should take responsibility for ensuring the company’s long-term resilience to climate risks.
The board should be properly informed about climate-related risks and opportunities and able to make relevant decisions.
The board should implement the right board and committee structures to ensure that climate risks and opportunities are understood, managed and reported.
The board should ensure that management fully identifies climate-related risks in the short, medium and long-term, assess their materiality, and takes appropriate action according to the materiality of the risks.
The board should ensure that management factors material climate-related risks and opportunities into the company’s strategy, risk management process and investment decisions.
The board should align executives’ incentives with the long-term success of the business. This may include climate-related targets in executive incentive schemes.
Reporting and Disclosure
The board should ensure that the company discloses its material climate-related risks, opportunities and strategic decisions to all stakeholders – especially investors and regulators. These disclosures should be included in financial reporting.
The board should stay informed on current best practice in climate governance by maintaining dialogue with peers, policy-makers, investors and others.