The Sustainability Board

Read our latest intelligence briefing on topical boardroom and governance issues, including  Governance needs to assess ‘geopolitical risks’  US enters final stage for new audit quality control regs  News round-up: this week in governance  How to deal with an unprepared director  Business beyond borders: mitigating geopolitical risk Read more: https://buff.ly/3z3rWxx #BoardsOfDirectors #CorpGov #Directors #Governance #Audit #Equality #AI #ESG #Risk #Leadership Principles for Responsible Investment The Sustainability Board Mazars in the UK London Business School McKenzie Intelligence Services

Our latest memo also featured in Board Agenda®. https://lnkd.in/eQVfwsrK

A holistic approach that incorporates broader aspects of material risk is crucial for ensuring the resilience and sustainability of business operations in today’s global polycrisis. We are delighted that Harvard Law School Forum on Corporate Governance has published our latest memo on: 'Integrating Geopolitics and Sustainability for Future-Ready Leadership' which includes Chloe Demrovsky, Fatima Hadj and Frederik Otto's key recommendations. https://lnkd.in/eRvNgqdp

In a complex world, business leaders face unprecedented challenges at the intersection of geopolitics and sustainability. Our new memo offers insights on how boards and executive teams can adapt their strategies to ensure resilience and long-term success. We emphasise the need for a holistic approach to risk assessment and decision-making, highlighting: - Expanding risk assessments to include geopolitical factors - Accelerating the shift towards sustainable investing - Addressing challenges in the insurance market Chloe Demrovsky, Fatima Hadj, and Frederik Otto aim to provide a few practical recommendations for leaders navigating the current 'polycrisis'. You can read the full memo here: https://lnkd.in/eQ8hN4XK

The Sustainable Leadership Preparedness Programme - 4 modules and 16 powerful lessons in one platform subscription with access for 1 year Learn at your own pace and achieve certification as you go along. - Self-paced online - 17-21 hours of content and growing - World class faculty of experts - Comprehensive certification and traceable online badges awarded milestones based - Additional video content of TSB roundtables, webinars and events - Invites to live sessions - CPD accredited https://lnkd.in/eJqwJB56

The Other Sustainability Regulation: AI might have significant impact to the sustainability of your business. The EU has recently approved the Artificial Intelligence Act which sets comprehensive regulations for AI technologies, impacting businesses globally. Regardless of industry, if you are a developer, deployer, or a specific other participant in the AI value chain, you not only have to stay on top of current sustainability and climate regulation but also this. Scope: Applies to all AI providers, users, importers, distributors, and manufacturers within and outside the EU if their AI systems impact the EU market or its citizens. Risk Categories: Classifies AI systems into unacceptable, high, limited, and minimal risk, with varying requirements for each. Requirements: High-risk AI systems must ensure data quality, transparency, human oversight, robustness, and security. Non-EU Businesses: Must comply if their AI affects the EU. They need an EU representative to ensure compliance. Timing: Following adoption, there will be a transition period of 24 months, allowing businesses time to prepare and align their operations with the new regulations. This means that the Act will become fully applicable in late 2026. Penalties: Include substantial fines and market withdrawal for non-compliance. We have summarised the act here: https://lnkd.in/eknxyQh8

In 2020, only 42% of public family enterprises had a board policy for sustainability oversight, now standing at 71%. Within the default sample (Top 100 Forbes 2000), the percentage was 63%, reaching 88% by 2023. This is a relative improvement of 40%, compared with 69% in family businesses, suggesting that family businesses can be more nimble to drive sustainable leadership. We measure sustainability oversight primarily by the presence of any board committee that addresses sustainability, or environmental, social, and governance (ESG) issues in its charter. Read our 5 year anniversary report to learn all about the evolution of ESG board preparedness: https://lnkd.in/eeY3nGPx

Five years ago, we set out on a mission to advance sustainable leadership and corporate governance. As we reflect on this journey, we are both proud of our accomplishments and acutely aware of the challenges that lie ahead. The Sustainability Board has evolved from a singular focus on reporting the state of global ESG oversight to become a comprehensive resource for policy, research, thought leadership, executive education programmes and trusted advisory services. Read all about what we have been doing over the last 5 years here: https://lnkd.in/dR3PBmH2

A committee charter, or terms of reference, is an important document in corporate governance. It serves as the blueprint for committee accountability and provides stakeholders with details into the board's responsibilities and activities. For sustainability board committees or those overseeing ESG matters, clearly articulating responsibilities can be challenging. This is especially true when the overall sustainable corporate strategy and roles are not coherently understood throughout the organisation and the board. Our proprietary database, HOLO, houses what we believe to be the world's largest collection of ESG oversight committee terms of reference. Several companies have crafted powerful charters that effectively guide their boards towards better sustainability governance. https://lnkd.in/ezGJvA3b

Last week TSB Global Advisors hosted another private virtual roundtable with a group of 18 independent directors, executives, and chairs. The discussion was moderated by Executive Advisor Frederik Otto. Our guest speakers were Chloe Demrovsky and Fatima Hadj who expertly summarised the nexus of risk, resilience and sustainability. 1. Integrating Geopolitical Perspectives Holistic Risk Assessment - Broaden Evaluation Criteria - Securing Value Chains - Adaptation Planning 2. Addressing Market Challenges Climate Risk Management - Reassess Risk Mitigation Strategies - Scenario Planning - Broaden Risk Perspectives 3. Enhancing Organisational Resilience Tools and Levers for Resilience - Insurance as a Tool - Robust Adaptation Measures Strategic ESG Implementation - Focus on Core Business Risks - Reporting and Transparency You can read the full synopsis and request the recorded fireside chat (excluding table discussion) here: https://lnkd.in/ebQscKJ8