Climate Change Governance Policy & Framework

Now is the time for Boards and executives to act implementing a climate change governance policy and framework ensuring appropriate risk assessment to meet their fiduciary and CSR duties.

"The vision and action of Directors, CEOs and senior-level executives is fundamental to addressing the risks posed by climate change and delivering a smooth transition to a low-carbon economy.[4]"

  • Everyone has a responsibility to mitigate and adapt to climate change. The IPCC recommended drastic action over only 12 years (2018 and 2030) to stabilise global warming at 1.5 degree C above pre-industrial temperatures[1]. It is estimated global financial losses to 2100 could be between $4.2 and $43trn on a global stock of manageable assets of $143trn[2];

  • Good practice guidance for governance boards now sets out the fundamental risks (and opportunities) for individual organisations and systemically (through the financial system) that climate change presents, the role for Boards and the importance of climate-related financial disclosures[3];

  • New Zealand specific policy and practice has been focused through the Climate Change Response (Zero Carbon) Amendment Bill, and activities of specific agencies (i.e RBNZ).

Contact to build on our Climate Change Governance Policy & Framework experience. For many businesses this is surprisingly simple ... with the key priority being to ensure a framework for directors to understand risks, opportunities and the appropriate management action.

[1] Special Report of the Intergovernmental Panel on Climate Change (IPCC) on Global Warming 1.5°C, 2018.

[2] The G20 Financial Security Board led Taskforce for Climate-related Financial Disclosures (TCFD) and the World Economic Forum How To Set Up Effective Climate Governance On Corporate Boards (Guiding principles and questions), 2019.

[3] As above

[4] Mark Carney, Governor Bank Of England and former Chair if the G20 Financial Stability Board