100. Why do corporate governance experts think so small??

What this episode covers

SCRIPT It turns out I was wrong that season 2 was going to end on episode 100. I had everything written and recorded and then something came across my desk that annoyed me, and I wonder if it might annoy some of you, too. Let me start by saying that the National Association of Corporate Directors in the US is amazing. Most of you probably know the NACD already and don’t need me to tell you – for the rest of you, take a few minutes to check them out. World class stuff. Still, I only recently read their July 2021 Director FAQ on Climate Governance and I think it’s reflective of a systemic shortcoming in just about every element of the way we think and talk about corporate governance. Any NACD member who’s curious about the nuts and bolts of climate change, and many relevant definitions and disclosure rules, will get a lot out of the document, as I did. But when I got to the section about what questions directors should be asking about climate change risk, I honestly had a long, exaggerated eye-roll, complete with dramatic groan. I’ll skip to the “too long/didn’t read” message. When it comes to discussing ANY big risk or opportunity, I STRONGLY believe that boards can and should push the conversation way past just asking “how does so and so present a risk to our business?” If you’re not wondering, for example, “what’s the best role for our company to play in making this world a safe, sustainable, livable place?” then you’ve already missed the boat. Soon enough, another company that IS asking that question will make sure you’re obsolete…or the planet will decide for all of us.