Climate related risk: Responsibility of the Board ……or not? With Harvey Nash Alumni
Join us at Alumni/Harvey Nash for this Round Table discussion on Thursday 7th February 2019 at 10.30 for 11.00 start and finish at 12.30. The address is 110, Bishopsgate, London, EC2N 4AY.
In the latest Alumni/Harvey Nash International Board Research, in partnership with London Business School’s Leadership Institute, it was noted that more than half of boards have never discussed the impact of climate change on their supply chains.
And yet the G20’s Financial Stability Board set up a Taskforce on Climate-related Financial Disclosure (TCFD) specifically noting the severe risks to sectors such as energy, manufacturing, retail and financial services with recommendations on how the risk should be disclosed.
Does anyone now think that climate change is not a real thing (other than the ‘odd’ notable exception)?
And the risks by sector are clear. Energy companies as we know them may not exist in 40 years; the disruption to supply chains and scarcity of raw materials all represent climate related financial risk. In the research, Financial Services is the least likely sector to have discussed climate-related risk and they are investing in and insuring all these sectors and more.
And the UK does not seem to be taking the TCFD seriously as the FRC has not specifically incorporated the recommendations into the new UK code, although it does talk of long term decision making and impact on broader society.
But the Bank of England, in September 2018, published research among the banks and 30% responded that climate change is the responsibility of the CSR team.
The Alumni/Harvey Nash research suggests that too many boards still see climate change purely in terms of green energy or government initiatives.
The Psychologist (September 2018) recently reported on the psychological forces at work, notably that the problem is too big, the ramifications too far in the future and that individuals feel they cannot make a difference.
It is interesting that the recent narrative on plastics has managed to galvanize action.
Thus our question, is climate change and related risk the responsibility of the board or not? And if it is, what should boards be doing to manage this?
Join us on Thursday 7th February, 10.30 for 11.00 at the offices of Harvey Nash, 110 Bishopsgate, London, EC2N 4AY.
Kindly hosted by Christine de Largy, Managing Director and Chair, UK Board Services, Harvey Nash