One of the board’s most important responsibilities is to oversee the management of risk, but an increasingly complex and fast evolving risk landscape makes this task harder than ever. Climate change poses a particular problem for boards – it is progressing rapidly and acts through multiple channels, ranging from increasingly destructive weather to technological change, business model disruption, regulatory risk and changes in customer behaviour. As concern about climate risks mounts among investors and regulators, and demands for disclosure of climate risks grows, boards that fail to effectively oversee climate risks may be vulnerable to shareholder action and litigation.
Published in partnership with the National Association of Corporate Directors, this specially curated selection of perspectives from Marsh & McLennan experts examines how boards should respond to climate change. The articles cover:
- How climate change multiplies enterprise risks and the implications for risk management
- Changing expectations for how climate risks should be managed and disclosed and the implications for director liability
- The board’s role in overseeing climate risk disclosure
- The role of the board in realizing commercial opportunities from climate change
- How boards should adapt to meet the new challenges climate change presents