Is there a role for not‐for‐profit or for‐purpose organizations in supporting governance professionals to engage with climate‐related opportunities and risks?

Abstract

Climate change in Australia has become a political risk (for political parties) and a physical, transitional, and regulatory risk for businesses. Not‐for‐profits (NFPs) and for‐purpose (FPs) organisations, for example, Climate Alliance Limited, have acted in the absence of national climate risk policy, to support businesses to become better informed to manage their exposure to this risk, and helping them to set their own commitments and pathways to low and net zero carbon businesses. The objective of this article is to demonstrate, through the case study method, how one Australian NFP/FP has influenced the business sector and regulation. Climate Alliance Limited has done this through its interventions of (1) sharing case studies (best practices) on successful transitions to a low carbon business model and linking climate risk to business risk; (2) bringing thought leaders (advocacy) from the Bank of England and UK Prudential Regulator into the Australian finance and business sector; and (3) by offering a program (reward and recognition), showcasing how business leaders have and are adapting to climate risks and capturing business value.

The climate resilience cycle: Using scenario analysis to inform climate‐resilient business strategies

“…This can be an external facilitator, a climate change specialist, or an external expert. Engaging external experts is feasible through cooperation with climate change research institutions, business network organisations (e.g., regional corporate sustainability and responsibility networks, science-based targets network or the En-ROADS Climate Ambassador Program) or NGOs like the Climate Alliance (Scheltus et al, 2021). In larger companies with sustainability expertise, we consider it feasible to perform the exercise without external participants.…”

Questions that board directors should be asking about emerging governance issues and risk: a practitioner’s view and implications for the extractive industries

“…This has distracted many business leaders from a focus on opportunity and risk management (around climate-related matters). Climate risk should, however, regardless of political debate, be treated as other business risks (Scheltus 2012(Scheltus , 2015Scheltus et al 2021). While the federal government in Australia has not set targets for net zero emissions, state governments have to varying extents, as have local governments.…”