This guide focuses on emerging trends in climate position statements and makes use of a three-step process outlined in our Guidebook on Developing Position Statements on Sustainability Issues.
To assemble this guide, we reviewed over two thousand climate change position statements from a wide range of geographies and industries and spoke with over 200 directors. Through our analysis, we have identified examples of how companies are explaining the issue of climate change, linking the issue of climate to strategy, and clarifying their climate commitments.
We hope this guide is helpful to you in constructing your own climate position statement.
In the past, it has been common for companies to issue broad positions on environmental management, sustainability, or corporate responsibility that address multiple (and often overlapping) environmental, social, and governance (ESG) issues. Too often, the result has been lengthy documents that fail to make a clear strategic connection between specific issues and their implications for business decision-making.
Yet, as stakeholder expectations for corporate social and environmental responsibility expand and intensify, companies are under increasing pressure to clearly convey their position on a range of important ESG issues, including specifically addressing the company's understanding of the context in which it operates and clarifying its role and commitments to address these challenges.
In our conversations with leading directors, we heard that by developing more contextual position statements, focused on specific issues like climate change, boards and executive teams can deepen their understanding of these issues, clarify how they link to the company's overall strategy, provide the direction and confidence for management and employees to act, as well as clarify their position for other key stakeholders. We also heard multiple requests for better guidance on how to develop a comprehensive yet concise position statement.
The consensus on climate science is unequivocal: it is happening, it is global, the consequences are severe and intensifying, and anthropogenic causes are the driving force.1, 2 Prompt and effective action from corporations, world governments, and communities towards limiting GHG emissions is not only essential - it's overdue.
The international business community is also witnessing an emergent and related cross-industrial trend: companies voluntarily disclosing their climate-related risks in alignment with the recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD).3 As described in the section below, the TCFD aims to bring greater transparency to climate-related risks. While currently voluntary, it is expected that regulation on mandatory climate risk disclosure is sure to follow.