Environmental, social and governance (ESG) issues are hot topics in corporate governance. It’s no wonder. The US is about to embark on the introduction of mandatory climate reporting, while other jurisdictions are doing likewise. Investors are demanding disclosures on net-zero progress while politicians and campaigners seek action on emissions. Climate risk and the environment are at the top of a board’s agenda.
Coming to terms with climate is a major responsibility for board members. And that requires skills and knowledge. One route to prepare for confronting climate risk is training. To assist board members, Diligent has launched a new certification programme equipping boardrooms with knowledge to confront the challenge of climate risk.
The programme offers four required courses: the connection between climate and balance sheets; climate and a board’s fiduciary duties; oversight of climate risk; and disclosures and investor engagement.
There are also optional elements, with programme participants asked to choose two topics from greenhouse gas accounting and measuring climate commitments; aligning incentives with climate aims; climate litigation; and carbon markets.
“Corporate leaders are pressured to meet the challenges and opportunities of climate change,” says Diligent. “The Climate Leadership Certificate Programme from Diligent prepares you to oversee climate risk and create sustainable growth strategies for your company.”
International pressure on climate
Climate is without doubt a board’s most pressing concern. The coming AGM season is set to see shareholders intensify their questions about the actions and policies developed by companies to cope.
Pressure to adjust to climate change comes from many quarters. Last week US regulators revealed a plan for mandatory climate reporting for Wall Street companies.
COP26 in Glasgow last year saw the launch of International Sustainability Reporting Standards, while the UK government built upon its proposals to make TCFD (Task Force on Climate-related Financial Disclosures) reporting guidelines mandatory.
The European Union has been promoting its own initiatives. It already has the Non-Financial Reporting Directive shaping company reporting, but that is about to be updated with the Corporate Sustainability Reporting Directive setting out more disclosure rules for EU companies. The EU is also pushing forward with new rules on mandatory due diligence for human rights and sustainability.
Together, regulators in the US, UK and EU are creating a culture and focus on the environment and wider sustainability issues.
Diligent’s programme takes an international approach too, with live and hybrid briefings taking place in New York, Austin and London conducted by a range of industry experts.
Speakers in the Climate Leadership Certificate include Joyce Cacho, a non-executive director with Sunrise Banks, trustee with the International Institute of Tropical Agriculture and board member at the World Benchmarking Alliance; Robert Eccles, professor of management practice at Saïd Business School at the University of Oxford; Michael Gerrard, a professor at the Sabin Centre for Climate Change Law, Columbia University; and Courteney Keatinge, a senior director at Glass Lewis and a leader in ESG research.
Climate remains the key issue for policy makers, regulators, campaigners and investors alike. That makes it a priority for board directors. Diligent’s programme will prepare them to face this pressing issue.
Find out more about the Diligent Climate Leadership Certificate Programme.