It’s time to put the climate at the top of corporate board agendas

The author contends that climate change represents a systemic macroeconomic risk and a significant investment opportunity that requires corporate boards to move beyond compliance toward strategic integration. The text highlights the pressure from institutional investors and the emergence of frameworks like the TCFD, while noting that boards struggle with long time horizons and the 'free-rider effect'. To bridge this gap, the World Economic Forum is developing guidance and governance principles to enhance the climate competence of directors.

• Climate change presents a dual financial reality for corporations: potential losses between 2100 could range from $4.2 trillion to $43 trillion, while investment opportunities through 2030 are predicted to reach $26 trillion.
• Corporate boards face four primary challenges in managing climate risk: the difficulty of modeling disruptive technologies and regulations, time horizons that exceed typical business planning cycles (the "Tragedy of the Horizon"), the "free-rider effect" where individual action is insufficient without collective response, and the risk of legal challenges for failing to meet fiduciary duties.
• Major institutional investors are increasingly demanding climate-smart governance and specific board expertise. Examples include the Norwegian Government Pension Fund's expectation for integrated climate management, State Street Global Advisors' Climate Change Risk Oversight Framework, and the California Public Employees’ Retirement System's requirement for boards with explicit expertise in climate change risk management strategies.
• The World Economic Forum is developing practical tools and governance principles to improve the climate competence of directors, building on existing frameworks such as the Task Force on Climate-related Financial Disclosure (TCFD) recommendations and the Climate100+ investor initiative.

APA

Breitinger, D. (2018). It’s time to put the climate at the top of corporate board agendas. World Economic Forum. https://www.weforum.org/stories/climate-action/it-s-time-to-put-the-climate-at-the-top-of-corporate-board-agendas/

Chicago

Breitinger, Dominik. It’s time to put the climate at the top of corporate board agendas. World Economic Forum, 2018. https://www.weforum.org/stories/climate-action/it-s-time-to-put-the-climate-at-the-top-of-corporate-board-agendas/.

Wikipedia

{{cite press release |last1=Breitinger |first1=Dominik |title=It’s time to put the climate at the top of corporate board agendas |publisher=World Economic Forum |date=18 September 2018 |url=https://www.weforum.org/stories/climate-action/it-s-time-to-put-the-climate-at-the-top-of-corporate-board-agendas/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@misc{breitinger2018its, author = {Breitinger, Dominik}, title = {{It’s time to put the climate at the top of corporate board agendas}}, publisher = {World Economic Forum}, year = {2018}, month = sep, url = {https://www.weforum.org/stories/climate-action/it-s-time-to-put-the-climate-at-the-top-of-corporate-board-agendas/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }