Sat. Jan 22nd, 2022

Many Australian boards are struggling to prepare their companies or organizations for climate change, and almost half of the country’s directors say they do not know how to tackle the problem.

A first of its kind survey conducted by the Australian Institute of Company Directors on how boards are tackling climate change reveals that 77 per cent of directors are concerned about how it will affect their organization but often failed to act.

Nearly half of the directors surveyed said their boards should pay more attention to the climate, but they did not know how to do it.

Nearly half of the directors surveyed said their boards should pay more attention to the climate, but they did not know how to do it.Credit:Getty

“It’s not that people are ignoring the problem, it’s that they do not know where to start,” said AICD CEO Angus Armor.

The AICD report is based on surveys of 2,000 directors of ASX listed companies, small businesses, government organizations and not for profit. Nearly half of the directors surveyed said their boards should be more aware of the climate, but that they did not know how to do so, while 28 per cent did not think their board had the knowledge or experience to address climate management issues.

Sir. Armor said directors should work to understand their organization’s impact on the climate and how climate change will affect them.

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“So it’s both considering how you can improve your own position on climate change and looking for opportunities to actually make your business stronger,” he said.

“As our climate change regulatory tools and our climate change reporting tools continue to evolve, there will be a fundamental requirement for companies to deal with it.”

Even smaller businesses will soon have to meet demands from consumers, larger supply chain customers and their staff for transparency around their environmental footprint.

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