The board role in climate action

At the close of Chapter Zero’s six-week campaign in the Financial Times, Julie Baddeley, Chair, reflects on the growth in board attention on climate since Chapter Zero was established in 2019, and how well the messages in the ads have resonated with members and non-members alike.

Understanding the impact of climate change and addressing it is a fiduciary responsibility for NEDs, says Chapter Zero Fellow Laurel Powers-Freeling. So, they must own it.

We are already seeing the effects of climate-related uninsurable risks (or very high premiums associated with heightened risks), so the necessity for new products from the insurance market and for companies to reach net zero is high, says Chapter Zero Fellow, David Carlin.

The Chairperson’s Insights into Climate Action provides a summary of highlights from interviews with 16 members of the World Economic Forum’s Community of Chairpersons on the topic of climate action.

Chapter Zero has partnered with Freshfields and the Centre for Climate Engagement to explore climate-related legal questions with non-executive directors from across the UK. The series began in September 2023 with a session providing an overview of the interaction between climate change, legal issues and business, and then focusing on legacy risks to companies, including litigation, and how they can be mitigated. Below is a summary of the second session which explored the landscape of legal issues that organisations face in daily operations and when implementing climate strategy, identifying key legal considerations at the forefront of transition planning.

In 2023, Chapter Zero partnered with McKinsey for a three-part event series that explored the impact non-executive directors (NEDs) can have in the boardroom to help their organisations achieve net zero. The second session, held on 21 September, explored how non-executive directors can navigate the net zero transition to shape and implement credible climate strategies. We have summarised below the key takeaways of this event.

Chapter Zero and White & Case held a session for non-executive directors (NEDs) in May 2023 offering practical advice and insights on the key legal duties and obligations of NEDs in relation to climate change. Here are the key takeaways.

Chapter Zero is not only equipping chairs and non-executive directors to lead on climate; we’re also inspiring them to be bold. Climate action is not just a moral argument – it’s a business one too.

Boards must put climate transition at the heart of corporate strategy, says the Climate Governance Initiative – an international network of more than 100,000 board directors that includes Chapter Zero.

It’s time to make net zero a reality – with COP26 imminent the conversation is turning from ambition to action. We focus on the power of the boardroom in the finale of our Financial Times advert series.

Boards are committed to addressing climate change, but knowledge and experience gaps in the boardroom may impact ability to drive future change according to this report from INSEAD and Heidrick & Struggles.

A briefing prepared for members of Chapter Zero by the University of Cambridge Institute for Sustainability Leadership with Earth on Board.

The World Economic Forum released a guide to help corporate boards drive climate governance effectively. This was developed in collaboration with PwC and consultation with over 50 board members and corporate executives.

This event discussed the wealth of business opportunities involved in the transition to net zero, from those created by scientific and technological developments and innovating with new business models, to building strategic partnerships and finding routes to new markets. A conversation with Dr Emily Shuckburgh, Director of Cambridge Zero at Cambridge University and Simon Carter, CEO of British Land.

In this interactive Q&A, attendees had the chance to get practical advice for the boardroom on their climate-related questions. Catch up on the questions that were raised and the advice the panel gave. This event was organised by ICAEW in collaboration with Chapter Zero during the ICAEW Climate Summit.

Lord Turner chairs the Energy Transitions Commission, a global coalition of leaders from across the energy landscape committed to achieving net zero by 2050. In this conversation, Emily Farnworth drew on his expertise to explore the role of non-executive directors in driving the low carbon transition especially in sectors where emissions are high and reducing them is particularly hard.