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ANALYSIS: Climate-Related Risks Add to Director Duties, Exposure

June 22, 2020, 8:12 PM

Climate change poses risks to global corporations across all industry sectors. Corporations are exposed to increasing impacts of physical risks, legal and compliance requirements, and litigation risks. But there is also growing evidence that climate change should be treated as a financial risk. As a result, investors and other stakeholders are pressuring companies to disclose information about how they manage and mitigate climate-related risks, and how they plan to transition their business strategy to align with a low-carbon economy. Prudent directors need to address these risks as part of their strategic planning.

Foreseeable Financial Risks

Corporate boards have historically viewed ...