Morrison & Foerster partner Suz Mac Cormac co-authored an article with PG&E’s Brian Wong for ACC Docket, a publication by the Association of Corporate Counsel, that covers how climate change impacts companies and how board members should address the related risks and issues.
“Ignoring the impact of climate change on business in the long term and the short term is at best irresponsible, and at worst could deal a significant blow to the company and its shareholders,” write the authors, who suggest that board members and in-house counsel should “consider changes in climate as they provide guidance and exercise their oversight function over management.”
“There is no ‘best-in-class’ solution for all boards to adopt in considering climate risk as part of their oversight function,” according to the authors, who then offer some leading practices on private governance as advice, noting that impact analysis, board governance structure, board education, management accountability, and transparency are key in preparing companies for change over the coming months and years.