From the article:
If the COVID-19 pandemic has taught us anything it’s the importance of good preparedness. That’s a lesson for directors of corporations, too, in identifying the risk from climate change — and putting that on the boardroom table.
“The board is responsible for overseeing risk,” says Carol Hansell, founder and senior partner of Hansell LLP, a boutique firm advising boards of directors, management teams, institutional shareholders and regulators on legal and governance challenges.
“With respect to the risks associated with climate change, the question we’ve been asked to address is: are directors responsible for making sure the company is looking at risks associated with climate change? The answer to that is yes, because the risks associated with climate change are so widely acknowledged that it would be virtually impossible for a director to say, ‘I wasn’t aware of the risks.'”
One risk management success story that comes to Hansell’s mind is that of the Shaw Festival, which she understands is insured against pandemics. “Whoever made the decisions, they were not worried about coronavirus, but about flu outbreak.” The Shaw Festival assessed “what could really sink us?” and the answer was a big outbreak of influenza which could halt a theatrical production. The festival’s staff continue to be paid throughout the COVID-19 pandemic.
“That’s an example of really good risk management strategy.”