The most recent global energy shock is highlighting how important, and how hard, a well-managed transition to net zero will be. While company engagement on climate change is rapidly evolving, new research has found that not enough companies are prioritizing tangible greenhouse gas (GHG) reduction commitments or aligning future capital expenditure with these targets.
One critical reason, the research highlights, could be that their boards do not have the composition or practices to provide the oversight needed to put climate at the center of strategic planning.
Conducted by the nonprofit BoardReady (Raji is an adviser) and sustainability consultancy A Bird’s Eye View (Helena is a principal), the research assessed data from 159 global companies identified by Climate Action 100+ as the largest corporate GHG emitters against the initiative’s net-zero benchmark indicators and their board’s composition. It found a positive correlation between more gender-diverse boards and company action across eight of the nine indicators.