A) Describe the board’s oversight of climate-related risks and opportunities.
B) Describe management’s role in assessing and managing risks and opportunities.
Guidance for All Sectors
In describing the board’s oversight of climate-related issues, organizations should consider including a discussion of the following:
- processes and frequency by which the board and/or board committees (e.g., audit, risk, or other committees) are informed about climate-related issues,
- whether the board and/or board committees consider climate-related issues when reviewing and guiding strategy, major plans of action, risk management policies, annual budgets, and business plans as well as setting the organization’s performance objectives, monitoring implementation and performance, and overseeing major capital expenditures, acquisitions, and divestitures, and
- how the board monitors and oversees progress against goals and targets for addressing climate-related issues.
In describing management’s role related to the assessment and management of climate-related issues, organizations should consider including the following information:
- whether the organization has assigned climate-related responsibilities to management-level positions or committees; and, if so, whether such management positions or committees report to the board or a committee of the board and whether those responsibilities include assessing and/or managing climate-related issues,
- a description of the associated organizational structure(s),
- processes by which management is informed about climate-related issues, and
- how management (through specific positions and/or management committees) monitors climate-related issues.
- Alignment with other frameworks
- Glossary and Abbreviations
- Implementation path
- Remuneration and organizational ownership
Resources to get you started
- G20/OECD Principles of Corporate Governance
- Guidelines for Multinational Enterprises
- King IV Code of Governance
- View from the Top
- Directors’ duties and liabilities around climate risk: the TCFD recommendations
- Concerns misplaced: Will compliance with the TCFD recommendations really expose companies and directors to liability risk?
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