This high-level roundtable brought together public and private sector experts to discuss how corporate governance policies and practices may need to be adapted to address the challenges of climate change and promote progress on climate objectives. To support the discussion, the roundtable featured the launch of the OECD report “Climate Change and Corporate Governance” developed to inform the review of the G20/OECD Principles of Corporate Governance.
Weaknesses in corporate governance and capital markets, including with respect to climate change and other environmental, social and governance (ESG) risks, have been further exposed by the COVID-19 crisis. Existing corporate governance frameworks may therefore need to be updated to help companies navigate the transition to a sustainable economic model with net zero emissions by 2050.
A crucial question for corporate change and the green transition is how to improve company disclosures of the environmental risks they face, as better disclosure will allow market participants to make more informed decisions and capital markets to close the information gap between today (the decisions boards and investors are making) and the long-term (a future of carbon neutrality). Other important questions are what should be expected from directors and shareholders to support the green transition, and what corporate governance policies would best enable an orderly transition for companies as well as for societies.
These are some of the questions the G20 and OECD are looking at in the ongoing review the G20/OECD Principles of Corporate Governance, with the aim of strengthening and adapting the guidance it provides, including on the management of climate change and other environmental and social risks.
More about the review of the Principles
DOCUMENTS AND LINKS
WATCH THE WEBCAST
Climate Change and Corporate Governance
Climate Change and Low-Carbon Transition Policies in State-Owned Enterprises
Mathias Cormann, Secretary-General, OECD
Enrico Giovannini, Minister for Sustainable Infrastructures and Mobility, Italy
Moderator: Masato Kanda, Chair, OECD Corporate Governance Committee; Vice-Minister of Finance for International Affairs, Japan
Didier Reynders, EU Commissioner for Justice
Panel discussion: Climate Change and Corporate Governance
Marie-Christine Coisne-Roquette, Chair, Sonepar Group and Colam Entreprendre; Lead Director, Board of Directors, TotalEnergies
Dan Konigsburg, Senior Managing Director, Global Boardroom Program, Deloitte; Chair, Business at OECD Corporate Governance Committee
Vassiliki Lazarakou, Chair, Hellenic Capital Market Commission; Member of the Management Board, European Securities and Markets Authority
Astrid Ludin, Deputy Commissioner, Financial Sector Conduct Authority, South Africa
Lee White, Executive Director, IFRS Foundation
Moderator: Carmine Di Noia, Director, Directorate for Financial and Enterprise Affairs, OECD
Yoshiki Takeuchi, Deputy Secretary-General, OECD