Boards should be proactive on managing climate risks

Continuing business-as-usual may result in increased liability exposure for corporate directors and officers, particularly for companies in Asia.  The consequences of boards not taking action on climate risk is likely to be severe, in both the short and long term, a new report highlights.

Jessica Robinson, Chief Executive of ASrIA, said: “Asia is not only one of the most vulnerable regions to the physical impacts of climate change, but research shows it suffers disproportionately more economic damage loss.”

“It is critical that investors, companies and particularly corporate directors and officers understand the wide ranging risks that they face associated with climate change.  These are likely to be extensive, including financial, compliance, litigation and regulatory risks.  Boards can do more to better manage and mitigate these risks.”

“We hope that this report serves not only as a first step in raising awareness and emphasizing the critical importance of enhanced climate governance, but also as a driver for companies to realize the opportunities and potential for Asia to show leadership in creating a low carbon economy.”

Shasi Gangadharan, Chief Executive Officer of the Singapore branch of the Federal Insurance Company, a member insurer of the Chubb Group of Insurance Companies, said: “Chubb is pleased to contribute to this report, which helps to raise the awareness among directors and officers of the many exposures they face in today’s business and legal environment.”

The Association for Sustainable & Responsible Investment in Asia (ASrIA) and Chubb Specialty Insurance has released an important report entitled Climate Governance in Asia: Considerations for Corporate Directors & Officer.

This key report seeks to raise awareness amongst investors, companies and their boards by addressing three critical areas – legal considerations, insurance aspects and the commercial implications of climate change – across key industry sectors in the Asia Pacific region. Importantly, the report highlights how the impact of climate change and the associated risks may impact fiduciary duties, director and officer liability, and investor due diligence.

The full report can be viewed on the ASrIA website by clicking here.