Intergovernmental Panel On Climate Change, Deloitte Global, Climate Change, Sustainability, Boards, Board Of Directors, Climate, Trust, Accountability

Intergovernmental Panel On Climate Change, Deloitte Global

Deloitte BrandVoice: How Boards Can Lead In The Fight Against Climate Change

How boards can lead in the fight against climate change Sponsored by @Deloitte

10/24/2021 7:30:00 AM

How boards can lead in the fight against climate change Sponsored by Deloitte

In spite of countless warnings and reports, we are still not seeing the kind of decisive action needed to combat this crisis. Businesses must prioritize climate change risks – and boards of directors are well positioned to help lead the charge.

 the pandemic and resulting economic downturn caused them to cut back on their organization's sustainability efforts. At a moment when sustainability actions need to significantly accelerate, many organizations were forced to take a step back. At the same time efforts were pulled back, over a quarter of executives surveyed indicated their organizations were already feeling the operational impacts of climate change.

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How climate change is affecting businessDeloitte Global 2021Businesses must prioritize climate change risks – and boards of directors are well positioned to help lead the charge.Why is that? Well, taking on climate change requires three important things:

Long-term thinking in a world dominated by short-term pressures.Greater trust in the institutions that can lead large-scale change – at a time when this trust is deemed to be at record .Unprecedented global collaboration.Significant challenges, all – yet precisely the areas where boards have the power to help companies excel. headtopics.com

Taking the long-term viewHumans naturally tend to be poor at thinking long term, and current business practices can exacerbate this tendency. When the next quarterly earnings report is perpetually right around the corner, it is understandable that the next quarter 

century could fade easily from an executive’s focus.Boards, however, are charged with taking a longer view: understanding future risks and opportunities, and ensuring the organization's present strategy is setting it up for long-term success. And as boards look to the future, now, there is consensus that climate change poses a serious threat to all businesses – from natural disasters disrupting operations, to resource scarcity and biodiversity loss threatening supply chains. The businesses likely to be most resilient in this uncertain future will be those that act now to build sustainability into every aspect of their operations.

It’s incumbent upon boards to help shape this long-term strategic vision and oversee the roadmap of actions management will take in the shorter term to achieve it.Building trust and accountabilityOf course, boards have the ability to help lay out this roadmap and hold management accountable for delivering on it.

Currently, climate misinformation and incidents of greenwashing have led to skepticism over whether businesses are committed to climate action. Boards can play an important role in helping their organizations take steps that re-establish basic trust with key stakeholders. headtopics.com

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That starts with helping to ensure that business leaders, and their employees, have a universal foundation of knowledge about climate change to understand the true impact their organization's actions are having on the planet as well as steps they can all take to reduce their carbon footprint.

Read more: Forbes »

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