It is estimated that between now and 2100, the potential financial losses arising from climate change could run from 4.2 trillion USD to as much as 43 trillion USD. At the same time, climate change adaptation and mitigation are also predicted to generate investment opportunities worth up to 26 trillion USD between now and 2030.
Board directors are faced with a fundamental principle. They have a duty to understand and prudently manage the potential risks and threats to the companies they oversee, no matter what the time horizon. Failure to act on and disclose relevant risks or threats may expose them or their companies.
The board should ensure that their composition is sufficiently diverse in knowledge, skills, experience, and background to effectively debate and take decisions informed by an awareness and understanding of climate-related threats and opportunities.
The links between climate change and business are becoming increasingly evident and inextricable. Business decisions and actions will slow or accelerate climate change, and climate change will drive risks and opportunities for business.
Boards of directors play a critical role in ensuring the long-term stewardship of the companies they oversee.
Chapter Zero Ukraine & Caucasus mobilises boards of directors from Ukraine, Georgia, and Armenia to support them in adopting an integrated, strategic approach to addressing the climate emergency.
The tasks of Chapter Zero Ukraine & Caucasus include close cooperation and engagement of board directors within the following areas:
Giving a board-level understanding of current mandatory and voluntary standards related to identifying, managing, and mitigating climate risks.
Providing an understanding of how climate factors inform investment decision-making, consistent with the delivery of their companies’ climate transition strategy over the near, medium, and long term.
Providing an understanding of how the executive remuneration policy incorporates climate-related KPIs that are aligned with interim milestones on the pathway to delivering their companies’ climate transition strategy.
Explaining how to align companies’ public policy positioning, so as to ensure consistency with their long-term climate transition strategy.
Interpret the ability to contribute an informed, independent, “outside-in” perspective into the boardroom to help inform and enrich debate and complement the internal expertise of management.
Who can join?
Members of boards of directors in Ukraine, Armenia, and Georgia.
Is your Board climate-aware?
There are many guiding questions that have to be answered by board members to verify whether their company has sufficiently integrated climate considerations into corporate governance processes. Here are some of them:
How does the board ensure that the company develops and encourages climate dialogue and methodology sharing among industry peers, investors, regulators, and other stakeholders?
How does your board maintain its awareness about good climate-governance practices? Which high performing technology and latest know-how could be implemented?
Does your company organize stakeholder dialogues and encourage the participation and inclusion of all relevant stakeholders (customers, regulators, NGOs, academia etc.)?
Is the board kept regularly informed, does it approve, and does it supervise consistent conduct of the company’s industry and public policy engagement?
How does the board ensure that climate risks and opportunities are being adequately discussed with investors, where legal and governance arrangements allow for such a dialogue?
If you would like to learn more about these guiding questions and increase the climate awareness of your organization visit our Knowledge Hub. Join the Chapter!
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We strive to mobilize chairs, non-executive, and independent directors through enhancing their skills in climate governance and climate action. Join the network of more than 20 chapters in over 50 countries.