Evolution of Climate Governance: A 2024 Perspective from AICD
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Written
04.03. 2024
Author
AICD
Source
AICD
Social
The Australian Institute of Company Directors (AICD) released its second study titled “Climate Governance Study 2024”, which is intended to act as a “temperature check” to assess how “perspectives and actions on climate governance are evolving”.
The study found that since its inaugural 2021 study, better practices have evolved with:
Strategy:
· leading directors pursuing long-term strategies;
· transition increasingly perceived as an opportunity, rather than just a risk to business as usual; and
· focus on both climate and nature as holistic topics.
Execution:
· executing climate strategy through a whole organization approach, ensuring the CFO is centrally involved and incentivizing the full leadership teams to address climate issues; and
· externally validating transition plans.
Governance:
· reviewing existing governance structures and processes;
· making climate and sustainability part of the regular board calendars; and
· investing in board & senior executive climate upskilling and briefings with experts.