CORPORATE GOVERNANCE “ Corporate governance has a profound effect on ESG ,” Amy says . “ The decisions of the board affect how much sustainability is prioritised and can help to ensure that sustainability is integral to corporate strategy and operations .
“ While we increasingly see climate commitments turn into action , with boards recognising the need to have sustainability as a core part of the business , we also see a lack of robust transition planning amongst some companies .”
EY ’ s Climate Risk Barometer reports that , despite agreeing to climate commitments , nearly half ( 47 %) of companies surveyed do not disclose a transition plan to back these – this is where corporate governance comes in to support .
Jonah ’ s framework at IBM sets a great example . He says : “ IBM has a topdown approach in terms of our ESG governance that starts with our Board and our CEO , extended from there to our ESG SteerCo and then to crossfunctional working groups .
“ IBM ’ s leadership stays true to its commitment towards a transparent and ethical business model . As leaders
66 June 2024