ABSTRACT
How do effective directors ensure that the organisations they serve are sustainable?
Based on a framework of global corporate governance best practice, which can be used in all organisations anywhere in the world, this chapter of Questions To Ask (QTA) in the boardroom gives a high-level but succinct introduction to the sustainability agenda.
The focus of investors and policymakers on the transition to a low-carbon and sustainable economy means not only that a company has to be aware of its impacts on society and the environment, but it has to assess and mitigate the impacts that a changing business and regulatory environment can have on the company’s business model and bottom line in the short and long term. This is the emerging notion of “double materiality” in sustainability. As regulators and consumers put pressure on investors, banks, and companies to become part of the solution to dramatic environmental and societal issues, and as technologies and markets evolve, sustainability can pose a threat to the long-term viability of a business.
The chapter’s introduction leads into the key Questions To Ask in the boardroom, giving the reader further insight into how to initiate discussions about sustainability practices.
