Climate Change and Climate Risk Oversight – A Guide for Corporate Leaders and Directors is a guide published by The Embedding Project, a global public-benefit research project that helps companies embed social and environmental factors across their operations and decision-making. This guide is intended to help support and lead corporate leaders and directors in helping business embed climate change reduction and adaption in their leadership strategies.
Climate change threatens the future success of businesses from all sectors. Businesses around the world have a key role to play to help avoid the worst impacts of climate change by supporting emissions reduction and climate
adaptation. Emissions must be halved by 2030 and reach net zero by 2050 and businesses must do their part to help drive the transition to a just, net-zero future. In addition, businesses will need to make proactive investments in climate
adaptation to prevent damage to crucial natural and physical infrastructure.
This guide supports corporate leaders and directors to understand:
• The science behind climate change,
• The present and future impacts of climate change,
• The physical risks climate change poses to business operations and the
transition risks associated with the shift to a net-zero economy, and
• The emerging expectations for corporate directors regarding their fiduciary
duty in the face of climate risks.
More and more, the public, investors, lenders, and insurers are calling for businesses to embed climate risks and opportunities into their strategic planning and decision-making. Leading companies are responding to these societal
demands – which are increasingly becoming regulatory obligations – through climate-aligned disclosure, goal setting, position statements, and financing. This guide outlines the key questions corporate directors should be asking to
ensure rigorous climate risk oversight and advance credible climate action.