Boards-Impact-Forum
The board should ensure that climate systemically informs strategic investment integration planning and decision-making processes and is embedded into the management of risk and opportunities across the organization
The Enacting Purpose Initiative is a multi-institution partnership between the University of Oxford, the University of California Berkeley, Brighthouse (a BCG company), Federated Hermes, WLRK and the British Academy.
Without an appropriately defined and wholly integrated corporate purpose, decision-making can be difficult. Systemic sustainability issues like climate change, health pandemics, biodiversity loss and supply chain management may not be considered in business decision-making if the purpose and business model focus only on profit or financial returns. Having a purpose which incorporates environmental, social and governance matters supports an organization in achieving objectives that benefit stakeholders beyond shareholders. The purpose of business is moving from shareholder exclusivity toward stakeholder inclusivity and this is changing the way that businesses make decisions.
In brief Management and the board should define “long-term” and develop a strategy that is focused not on where the organization “is going” but where it “can go.” It is essential for an organization’s talent strategy and ESG priorities to be aligned and integrated with the overall strategy. Boards can help recalibrate the risk framework […]
Boards can add much more value to corporate strategy. Here’s how
Context In the last few years, expectations on whether—and how—companies should engage on climate change have evolved. Companies and investors now largely understand that climate change poses clear financial and even material risks to companies and industries across the economy. Additionally, climate change is now widely recognized as posing a systemic threat to financial markets […]
