Friday - January 14, 2022 | News+Articles
Boardrooms must pick the right board game to play
By Mathew Loup
Increasingly wild and destructive weather events, combined with the COP26 summit and ongoing global supply chain ruptures, have served to heighten awareness and sharpen the focus on environmental, social and governance (ESG) issues in boardrooms everywhere this year.
Companies must weigh up ESG risks and opportunities of growing complexity. The stakes are high just to stay in the game, and will only get higher.
Our CEO, Helle Bank Jorgensen, highlighted the state of play in a recent article for Chief Executive Magazine. She focused on the three major players at the table for 2022: Climate change, Diversity, equity and inclusion, and Cybersecurity.
For Helle, boards must prioritize education and planning: “Most companies simply don’t understand climate risk and how it can impact their business. The heavy carbon emitters see what’s in front of them, the others simply do not. It’s not a matter of ignoring—it’s sheer ignorance.”
“Boards face a multitude of reporting requirements already, and there are more to come. If you don’t have a climate transition plan, then banks will become increasingly wary while asset managers and investors will simply walk away. Although companies are increasingly stating ‘we will be carbon neutral by 2050’, stakeholders and investors want—and need— concrete plans showing the path and milestones to that goal.”
Read “The Game of Risk that will Make or Break Your Company” in full at Chief Executive Magazine.