Evolution of Climate Governance: A 2024 Perspective from AICD

The Australian Institute of Company Directors (AICD) released its second study titled “Climate Governance Study 2024”, which is intended to act as a “temperature check” to assess how “perspectives and actions on climate governance are evolving”.

The study found that since its inaugural 2021 study, better practices have evolved with:

Strategy:

· leading directors pursuing long-term strategies;

· transition increasingly perceived as an opportunity, rather than just a risk to business as usual; and

· focus on both climate and nature as holistic topics.

Execution:

· executing climate strategy through a whole organization approach, ensuring the CFO is centrally involved and incentivizing the full leadership teams to address climate issues; and

· externally validating transition plans.

Governance:

· reviewing existing governance structures and processes;

· making climate and sustainability part of the regular board calendars; and

· investing in board & senior executive climate upskilling and briefings with experts.