Climate action no longer a moral question, but a fiduciary duty for boards

The onset of the pandemic has seen businesses spend a lot of effort adapting to changes brought on by the COVID-19 crisis but while health risks remain a priority, organisations have also turned their focus back to systemic challenges and that includes climate change.

Discussions around climate-related risks are again at the front and centre of boardroom discussions and with the UN Climate Change Conference (COP26) taking place at the end of this month, it is timely to revisit the duties of company board directors in steering organisations onto a sustainable path. With climate change increasingly evolving into a financial risk for companies, it is undeniable that addressing it as a foreseeable threat is not just an ethical issue for boards but a fiduciary duty.