The Chairperson’s Guide to Climate Integrity

The document outlines the critical role of corporate boards in ensuring 'climate integrity' to avoid greenwashing and litigation. It identifies four pillars of trust—humanity, transparency, capability, and reliability—and warns against common pitfalls such as over-reliance on carbon offsets and unsubstantiated net-zero claims. The guide emphasizes that boards must move beyond mere regulatory compliance to anticipate evolving societal expectations and integrate sustainability into core business strategies.

• Corporate boards can build and maintain stakeholder trust by focusing on four critical pillars: Humanity (genuine interest in stakeholder concerns), Transparency (open dialogue on trade-offs and uncertainties), Capability (upskilling the workforce to address climate and nature risks), and Reliability (consistent delivery on commitments).
• There are significant risks to corporate integrity in the sustainability context, including the use of non-science-based claims, an over-reliance on carbon offsets, and the susceptibility of emerging climate markets to fraud and corruption. Misleading communications, or 'greenwashing', are further categorized into six 'shades', such as 'greenhushing' (hiding efforts to avoid scrutiny) and 'greenlighting' (spotlighting green actions to distract from damaging activities).
• Climate-related litigation is increasing and diversifying; more than 2,000 cases have been identified worldwide, with the number of cases doubling since 2015. Litigation is no longer limited to the oil and gas sector, as over half of corporate cases in 2021 involved defendants outside the fossil-fuelled energy sector.
• The document argues that mandatory sustainability reporting standards, such as IFRS S1 and IFRS S2, provide a framework for identifying risks but are often lagging indicators of stakeholder expectations. Boards should view these disclosures as an opportunity for strategic identification of risks rather than just a compliance exercise.
• Industry collaboration is essential for a faster transition and sharing investment costs, but it is often hindered by concerns over competition and antitrust laws. Some regulators, including the European Commission, are introducing guidelines or 'sandboxes' to facilitate sustainability agreements that do not violate competition laws.
• The case of Ørsted illustrates a successful transition from a fossil-fuel-heavy utility to a renewables leader, achieving a 314% increase in market capitalization since its 2016 IPO by aligning its strategy with science-based targets and increasing transparency.

APA

World Economic Forum (2023). The Chairperson’s Guide to Climate Integrity. https://www3.weforum.org/docs/WEF_Chairpersons_Guide_Climate_Integrity_2023.pdf

Chicago

World Economic Forum. The Chairperson’s Guide to Climate Integrity. 2023. https://www3.weforum.org/docs/WEF_Chairpersons_Guide_Climate_Integrity_2023.pdf.

Wikipedia

{{cite report |author=World Economic Forum |title=The Chairperson’s Guide to Climate Integrity |date=July 2023 |url=https://www3.weforum.org/docs/WEF_Chairpersons_Guide_Climate_Integrity_2023.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{worldeconomicforum2023chairpersons, author = {{World Economic Forum}}, title = {{The Chairperson’s Guide to Climate Integrity}}, institution = {World Economic Forum}, year = {2023}, month = jul, url = {https://www3.weforum.org/docs/WEF_Chairpersons_Guide_Climate_Integrity_2023.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }