State Street Global Advisors released a "Climate Change Risk Oversight Framework for Directors" that encompasses - among other things:
- Identifying and evaluating the GICS sector and company-specific exposures to physical, regulatory, and economic climate change-related risks, and associated risk mitigators or attributes that might give the company a competitive advantage
- Ability and preparedness to articulate and engage on the company's strategy for addressing climate change-related risks
- Evaluating shareholder proposals in the context of the business risks
High-risk sector company boards are further encouraged to evaluate their composition and practices to ensure "climate competence" in the boardroom.
The guidance includes a user-friendly table with examples of potential physical, regulatory and economic climate-related risks by GICS sector.
Access additional information & resources on our ESG and Institutional Investors pages. This post first appeared in the weekly Society Alert!