Compliance Countdown Session 2: Governance & Leadership
Watch the recording: what AASB S2 expects of boards and executives — governance, director duties, and leadership accountability for climate reporting.
Speakers
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.
Presentation Slides
April 17, 2025 | Session 2: Governance & Leadership in Compliance Countdown Series by Francesca Castro
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