Boardroom climate competence: Organizing for oversight

The playbook on board oversight of climate change–related issues is still being written. Companies find themselves pushed and pulled by changing and often inconsistent forces—including geopolitical factors, short-term energy security concerns, demands by customers and employees, pressure from shareholders and activists, and the interests of rating organizations, standard setters, and regulators around the world. An understanding of the business impact of climate change–related issues is increasingly important, and corporate boards are expected to be on top of them as they guide strategy and oversee risk.

This paper, from the KPMG Board Leadership Center and Plan C Advisors, follows Boardroom climate competence: Getting ahead of the curve, which laid out a framework for board oversight of the business impacts of climate change.

Read on for a deeper dive into how board governance itself is evolving to address the issues: building boardroom awareness and understanding, coordinating oversight among the full board and its committees, and working with management to set the tone, guide the path forward, and provide oversight and accountability.