Climate change – the existential threat. Hansell LLP’s Carol Hansell discusses the board’s role in addressing this risk
Toronto, June 7th 2022 – Renowned governance expert Carol Hansell has updated her widely read opinion on the responsibilities of directors in addressing climate change risk. Although many directors are now more engaged in the oversight of climate change risk, Ms. Hansell notes that we are just at the beginning of the climate risk journey.
Climate change and the risks it presents are undeniable. How should corporations and their boards address this risk? Are there standards and tools to support their work? Ms. Hansell explores the answers to these questions in her latest opinion, Climate Change Risk on the Boardroom Table.
Directors must address climate change. Stakeholders are increasingly demanding companies take tangible measures to address climate change risks. Ms. Hansell notes that shareholders are submitting more proposals; institutional investors are calling on companies to take action; and proxy advisory firms are pushing for enhanced disclosure. Regulators are also stepping in. Ms. Hansell’s opinion notes:
“Directors must put aside any preconceptions they may have about the reality or imminence of the [climate change] risk. … Rather, they must put climate change on the board agenda as more than just a discussion point or an education session.”
Using her decades of expertise, Ms. Hansell sets out climate change reporting standards and frameworks as well as governance tools to help companies navigate these additional obligations. She has advised numerous Canadian companies and provided education sessions to boards and management teams on their role in managing climate change risks.
Read the Opinion: Climate Change Risk on the Boardroom Table