To govern effectively, boards must embrace environmental, social and governance (ESG) matters to ensure they are well positioned to meet accelerating ESG risks and opportunities, as well as the increasing demand for ESG action from investors and stakeholders.
Bringing together ESG: Board structures and sustainability
The AICD and HSF have jointly prepared a new guide ‘Bringing together ESG: Board structures and sustainability’ to help directors and management establish and elevate ESG matters to the board.
The guide explores:
- Directors’ duties and effective stakeholder engagement on sustainability
- The role of existing committee structures in elevating ESG matters
- The function, structure and benefits of a Sustainability Committee
It draws on learnings from market practice and trends seen in overseas jurisdictions and includes a template Sustainability Charter – a practical starting point for organisations considering how a standalone ESG or sustainability committee would operate in practice.
This guide is published as part of the work program of the Climate Governance Initiative Australia a multi-partner collaboration aimed at supporting effective climate governance by Australian boards. Further practical resources from the Climate Governance Initiative Australia can be found here.
The guide aims to help boards decide their approach to integrating ESG into their decision-making. There is no one size fits all for this issue. For some organisations, it will sit with the board. For others, it will sit in existing committee structures.
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