The Climate Governance Initiative (CGI), hosted at Hughes Hall, Cambridge, and the European Bank for Reconstruction and Development (EBRD) have established a partnership to enhance corporate climate governance in accordance with international best practice.
This partnership will enhance boards’ understanding of how climate risks could affect their business in key regions of focus for the bank. CGI will work closely with EBRD to promote climate governance of companies, including training non-executive directors on climate-related risks and the implications for business to boost boards’ capacity to move strategically towards a net zero economy.
As well as leading to better governance, in alignment with the CGI’s mission and the World Economic Forum’s 8 Principles for Climate Governance, this partnership is expected to enhance the delivery of the EBRD’s Green Economy Transition (GET) approach, through which the multilateral development bank aims to make at least half its investments green by 2025. It will enable the two organisations to collaborate on joint projects and activities to instigate systemic changes towards sound corporate climate governance and better management of climate-related risk.
“To respond effectively to the challenges of climate change, corporate boards have to enhance their knowledge of how climate risks could affect their companies, stakeholders, value chains and markets, and what steps to take to mitigate such risks,” said Harry Boyd-Carpenter, EBRD Managing Director, Climate Strategy and Delivery.
He added: “By raising the issue of climate change in the boardroom, non-executive directors have the potential to make an important contribution to addressing climate-related risks and opportunities, instigating the change process to ensure that climate considerations are embedded in the company’s strategic direction. We are pleased to partner up with the Climate Governance Initiative to promote the Climate Governance Principles amongst existing and new clients.”
“Boards play a critical role in tackling climate change and now is the time to act. We are excited that the CGI is joining forces with EBRD, bringing together the skills, resources and reach needed to mobilise boards to take climate action. This partnership will enable an important new wave of climate champions who are ready to deliver the impact needed to accelerate the net-zero economy,” said Emily Farnworth, Head of Secretariat and Governing Board Member at the Climate Governance Initiative, and Co-Director of the Centre for Climate Engagement.
“Around the world, boards are recognising their critical role in mobilising the private sector to accelerate the net-zero transition and are enhancing their capabilities to ensure long-term climate impact. We look forward to this collaboration between the European Bank for Reconstruction and Development and the Climate Governance Initiative in support of this global community of non-executive directors and its role in addressing the climate challenge”, said Antonia Gawel, member of the Executive Committee, World Economic Forum and Governing Board Member at the Climate Governance Initiative.