Key Takeaways: Session 2 – Governance in Mandatory Climate Reporting
In this session, we dove into the essential governance structures required for effective climate reporting, focusing on leadership’s role in overseeing climate-related risks, opportunities, and ensuring compliance. We explored best practices for engaging leadership in the reporting process and ensure a strong foundation for effective mandatory reporting.
We had an amazing session filled with thoughtful questions and insights. Below are the key takeaways:
- Defining Governance Roles
Clear leadership is crucial for managing climate-related risks. Governance structures should identify specific roles and responsibilities, ensuring trust and accountability, particularly with boards and investors. - Effective Governance Structures
A solid governance framework involves assigning the right people to oversee climate actions. Upskilling executives like CSOs and CFOs is vital to manage evolving climate risks. - Integration Across Departments
Climate action should be integrated across all departments, from procurement to marketing. Clear reporting lines ensure effective decision-making and transparency. - Upskilling and Competence Evidence
Evidence of board and executive upskilling is essential. Competency in managing climate risks can be tracked through matrices and ongoing internal development. - Documenting Governance Processes
Comprehensive documentation of governance structures, roles, and decisions is necessary for compliance with climate reporting regulations. - Remuneration and Incentives
Linking executive bonuses to climate targets ensures accountability. Companies should set clear, measurable climate goals tied to performance incentives. - Strategic Decision-Making
Climate risks must be considered in financial and investment decisions. Boards should include climate contingencies in their projections to minimize future risks. - Timelines for Expertise Committees
Group 2 and 3 companies should start setting up governance structures early. Recurring meetings and action points ensure progress toward compliance with climate disclosures.
If you wish to access other resources, reach out to francesca.castro@netnada.com.au.
Presentation Slides
