With recent wildfires, extreme flooding and rising sea levels devastating communities across North America, the financial impacts of ESG risks are becoming more evident. As these risks become financially relevant, they belong on the board’s agenda.
Running the Risk makes the case that corporate boards must shift to proactively recognize and accelerate action on ESG risks in order to avoid potential financial losses, investor pressure, or even litigation. The report gives practical recommendations and identifies leading practices for corporate directors on how they can systematically work with management to ensure that the right ESG risks are identified, assessed and acted upon.
It’s not a question of
whether a board should oversee these issues but instead recognizing how a board should oversee these risks. Corporate boards in the 21st century need to equip themselves with information on best practices for this ever more important area of oversight.
Last month, we launched the Ceres Accelerator for Sustainable Capital Markets to spur wholesale action on reducing the worst financial impacts of the global climate crisis and other sustainability threats. Corporate boards are integral in scaling such action due to their responsibilities to investors, corporations, and other stakeholders.
Thank you!
Veena Ramani,
Senior Program Director, Capital Market Systems
Ceres
Ceres is a sustainability nonprofit organization working with the most influential investors and companies to build leadership and drive solutions throughout the economy.