Investors are concentrating on what companies are doing—and disclosing—about the potential impact of climate-related risks on business models and operations, leading to calls for climate-competent boards. It is clear that how a company addresses climate-related issues is not just about reputation and good corporate citizenship— it is a matter of long-term corporate performance.

BlackRock, the world’s largest asset manager, identified climate risk as one of its top engagement priorities for 2017. CalPERS amended its corporate governance principles to state that board members of companies it owns should have expertise and experience in climate change risk-management strategies. State Street Global Advisors published guidance for directors on evaluating potential climate-related risks to their companies. To download a copy of the article, please click here .