Climate Governance Initiative Overview
The Climate Governance Initiative (CGI) is a project in collaboration with the World Economic Forum. It supports the growth of groups of board directors around the world to form networks, known as Chapters.
The core mission of the Chapters is to promote the implementation of the Principles for Effective Climate Governance published by the World Economic Forum in 2019 by mobilising, educating and equipping non-executive director members with the skills and knowledge necessary to address climate change at board level.
The 8 WEF Climate Governance Principles are:
Climate accountability on boards
The board should take responsibility for ensuring the company’s long-term resilience to climate risks.
Command of the subject
The board should be properly informed about climate-related risks and opportunities and able to make relevant decisions.
The board should implement the right board and committee structures to ensure that climate risks and opportunities are understood, managed and reported.
Material risk and opportunity assessment
The board should ensure that management fully identifies climate-related risks in the short, medium and long-term, assess their materiality, and takes appropriate action according to the materiality of the risks.
The board should ensure that management factors material climate-related risks and opportunities into the company’s strategy, risk management process and investment decisions.
The board should align executives’ incentives with the long-term success of the business. This may include climate-related targets in executive incentive schemes.
Reporting and disclosure
The board should ensure that the company discloses its material climate-related risks, opportunities and strategic decisions to all stakeholders – especially investors and regulators. These disclosures should be included in financial reporting.
The board should stay informed on current best practice in climate governance by maintaining dialogue with peers, policy-makers, investors and others.
The CGI Governing Board, chaired by an elected representative from a Chapter, sets the overall governance and direction of CGI. The CGI Governing Board comprises one World Economic Forum representative and elected representatives from the CGI network. The CGI Secretariat coordinates resources, originates some materials and events, as well as tracks and disseminates the activities of the various Chapters.