HowtoSetUpEffectiveClimateGovernanceonCorporateBoardsGuidingprinciplesandquestionsJanuary2019IncollaborationwithPwCWorldEconomicForum91-93routedelaCapiteCH-1223Cologny/GenevaSwitzerlandTel.:+41(0)228691212Fax:+41(0)227862744Email:contact@weforum.orgwww.weforum.org©2018WorldEconomicForum.Allrightsreserved.Nopartofthispublicationmaybereproducedortransmittedinanyformorbyanymeans,includingphotocopyingandrecording,orbyanyinformationstorageandretrievalsystem.3HowtoSetUpEffectiveClimateGovernanceonCorporateBoardsForewordExecutiveSummaryGlobalContextClimateGovernancePrinciplesandGuidingQuestionsOutlookandConclusionAppendices:1.Legalperspective2.Investorperspective3.Designoftheprinciplesandconsultationprocess4.GlossaryoftermsContributorsEndnotes567111819192122232526Contents4HowtoSetUpEffectiveClimateGovernanceonCorporateBoards5HowtoSetUpEffectiveClimateGovernanceonCorporateBoardsForewordClimatechangeisvisiblydisruptingbusiness.Itisdrivingunprecedentedphysicalimpacts,suchasrisingsealevelsandincreasedfrequencyofextremeweatherevents.Atthesametime,policyandtechnologychangesthatseektolimitwarmingandreducetheassociatedphysicalimpactscanalsocausedisruptiontobusiness.Aswithanyformofdisruption,climatechangeiscreatingandwillcontinuetocreaterisksandopportunitiesforbusinessinadiversenumberofways.Thisdisruptiverelationshipbetweenclimatechangeandbusinessisalreadyreceivingincreasedattention.ThishasbeenpromptedbytheParisAgreement,theemergenceofclimate-relatedlegislation,therecommendationsoftheFinancialStabilityBoard’sTaskForceonClimate-RelatedFinancialDisclosures(TCFD)and,mostrecently,theheightenedawarenessofphysicalimpactsandrisksdetailedintheSpecialReportoftheIntergovernmentalPanelonClimateChange(IPCC)onGlobalWarming1.5°C.Inlightofthisattention,investors,regulatorsandotherstakeholdersarechallengingcompaniestodemonstrateanintegrated,strategicapproachtoaddressingclimate-changerisksandopportunities.Animportantelementinensuringthatclimaterisksandopportunitiesareappropriatelyaddressedist...
