Transparency and governance incentives, together with responsible investors, elevates sustainability among board priorities.
In 2021 the European Commission will present two intertwined legislative proposals aiming to foster integration of sustainability in corporate strategies. The first one, the reform of the EU Non-Financial Reporting Directive (NFRD), aims to ensure transparency on companies’ sustainability performance to improve corporate accountability and enable sustainable finance (see our previous article). The second one, the sustainable corporate governance initiative, will clarify corporate obligations to identify, prevent and mitigate severe human rights and environmental impacts, and board oversight over sustainability risks, strategy and targets.
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Responsibility for safeguarding corporate culture falls with board directors, but how can that be done effectively? A good start would be to ask yourselves the following questions at every board meeting.
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