EDITORIAL: NET ZERO AND THE BOARD
January 2022 Edition - Written by Lesley Stephenson
Happy New Year! Welcome to our first newsletter of 2022.
In a recent article in the Governance newsletter, FT Non-Executive Diploma Graduate Margaret-Ann Splawn, who was such an interesting speaker at our December NED Conversations, outlines what all boards of directors need to know following COP26 last November. We thought you might find her final summary useful - see below.
“Net zero is not a bolt-on that sits in the sustainability department. Getting to net zero requires a whole-of-company approach. Adjustments will have to be made along the way as not every goal or target will be met.
Sharing your company’s journey in a transparent way supports the credibility of your climate commitments.
Here are some key takeaways for board directors and the C-Suite:
Companies need to know their current carbon footprint and understand their future one to tie them with their business strategy and growth plans
Climate ambitions need to be grounded in science
Net zero alignment must inform every boardroom decision
As mandatory sustainability and climate-related disclosure and reporting is on the rise, supply chains are now a material risk
Be transparent. Communicate company climate and sustainability strategy, both internally and externally, to stakeholders. Share targets, milestones, transition plans and delivery.
Transitioning to becoming a low carbon company has risks but also creates enormous business opportunities and encourages both innovation and collaboration. COP26 has boosted the Paris Agreement and COP27 in Egypt will carry this forward, which means that net zero alignment must inform every board decision."