Advancing the board-management climate conversation
The third paper in our Boardroom Climate Competence series explores the depth and breadth of the board and management conversation on climate.
Shifts in the regulatory, political, competitive, and physical landscapes associated with climate change are leading to greater board engagement with management than we observed when we published our first paper in this series on boardroom climate competence in September 2021. The physical impacts on business operations are increasing as extreme and unusual weather proliferates, yet the challenges of adaptation and mitigation are burdened by economic and geopolitical realities. At the same time, a wealth of innovation in greener products and ways of doing business offer tremendous opportunities for value creation across a wide span of industries. These factors are driving the evolution in the board/management conversation, along with increasing stakeholder pressure for transparency, attacks on greenwashing, and a focus on data sourcing and verification in preparation for upcoming regulatory disclosure requirements.
Based on insights from the interviewees for this paper—as well as ongoing conversations with board members and business leaders—board members and management are engaging more frequently in discussions that factor in climate change and are seeking a broader array of perspectives from across the organization. This paper explores the changing board-management conversation associated with climate change on the topics of value creation, risk, talent, and communication. As our interviewees made clear, the board’s guidance and support of management are critical as companies work through green initiatives and strategies aligned with long-term imperatives.
Advancing the board-management conversation looks at corporate climate considerations in the following areas:
- Value creation
- Risk
- Talent
- Communications
Webcast replay: Organizing the board for climate oversight
KPMG Senior Advisor, Susan Angele leads a discussion with Amanda North, Founder and CEO, Plan C Advisors and Jill Kolling, Vice President, ESG & Chief Sustainability Officer, James Hardie on the forces driving greater engagement by boards with management on the topic of climate.
Survey responses from self identified board directors registered for the September 28, 2023, KPMG Board Leadership Center Webcast: Organizing the board for climate oversight.
In your opinion, which of the following is the most significant challenge for the board related to oversight of climate risk and opportunity?
In your opinion, which of the following is the most significant challenge for management related to climate risk and opportunity?
Drive into our thinking:
Boardroom climate competence: Advancing the board-management conversation
Download PDFReceive the latest insights from the Board Leadership Center
Sign up to receive Board Leadership Weekly and Directors Quarterly