The duties of non-executive directors set out in Section 172 of the Companies Act (2006) means the financial, reputational, and practical implications of climate change need to be considered to fulfil the role effectively. Regardless of these duties, many non-executive directors feel a personal motivation to engage the board in a discussion about climate change.
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A director of a company must act in the way he considers, in good faith, would be most likely to promote the success of the company for the benefit of its members as a whole, and in doing so have regard (amongst other matters) to… (d)the impact of the company’s operations on the community and the environment.Section 172 (d), Companies Act 2006
Primer on Climate Change: Directors’ Duties and Disclosure Obligations
Explore the duties and obligations of board directors as they relate to climate change. This Climate Governance Initiative and the Commonwealth Climate and Law Initiative primer includes a section on the UK as well as jurisdictions from around the world.
Take the Chapter Zero Board Readiness Check
Do you need to do more to address climate change in your business? Our Board Readiness Check can help you explore this. It is designed so that you can complete it yourself, or work on it together with your board.
Watch Richard Gillingwater reflect on his tenure as SSE Chair, discuss the key challenges and offer advice to boards and chairs as they navigate the risks and opportunities associated with climate change.
Read insights from discussions with Chapter Zero members as they navigate the role their committee plays in progressing the board’s climate plans.
When it comes to net zero “You’re either going to be a leader or a laggard, but you’re going to be in that race.” Julie Baddeley shares her insights with Deloitte on starting Chapter Zero.