Sidley’s “Legal Considerations For Oversight of Climate-Related Risks” provides guidance to boards on their climate-related risk oversight responsibilities in the context of directors’ longstanding fiduciary duties and federal securities law requirements. As with other risks the board is charged with overseeing, effecting that responsibility encompasses (among other things) monitoring management’s performance (without assuming the role of management) and material risks; ensuring the board is equipped in the aggregate with the proper skill sets to provide effective oversight; and regular (at least annual) review by the board of key risks and the company’s enterprise risk management system.
Access additional resources on our Climate Risk & Disclosure »Board Oversight and Risk Management & Oversight pages.
This post first appeared in the weekly Society Alert!