Boardrooms, senior executives and business leaders are increasingly confident in addressing challenges presented by climate risk, but a failure to consider the ‘People Factor’ in any boardroom decarbonisation strategy could undermine climate change mitigation efforts, according to a new report from Eversheds Sutherland and KPMG.
The survey, with its findings published in a report entitled ‘Climate Change & the People Factor,’ reveals that the reality of climate change awareness has permeated boardrooms across the globe and is recognised as a priority issue with significant implications for companies’ business models and impact on their stakeholders: from employees through to the broader community in which businesses operate.
The survey also found that climate change expertise is valued increasingly highly. Many companies have already appointed climate change experts to their boards, while also looking to reskill and retrain their existing staff to meet the challenges of the low carbon economy. Planning and engagement with all stakeholders will be essential to a successful transition, as will working in partnership with government and educators to ensure the necessary supply of skills.
‘Climate Change & the People Factor’ was published on Tuesday 9 November, to coincide with the 2021 United Nations Climate Change Conference (COP26). The joint survey of 1,095 C-suite leaders across some of the world’s leading companies was conducted by global legal practice Eversheds Sutherland and professional services organization KPMG. The report follows a similar review of C-suite opinions and attitudes to climate risk, published by Eversheds Sutherland and KPMG in 2020, entitled ‘Climate change and corporate value.’
‘Climate Change & the People Factor’ is co-authored by Diane Gilhooley and Herbert J Short, Global Co-Heads of ESG at Eversheds Sutherland; Mike Hayes, Global Head of Renewables for KPMG International and Global Head of Climate Change & Decarbonization for KPMG IMPACT; and Sophie Heading, Global Geopolitics Lead, KPMG International.
Hayes says: “Corporates have made significant progress in recognising what needs to be done to address the challenges, compared to the initial report ‘Climate change and corporate value.’ What is clear though, is that more could be done at an individual and team level to assist with the drive towards decarbonisation, and there is an opportunity for cooperation among businesses, training providers and governments to really advance this development and help ensure global businesses confront climate risk head-on.”
