Environmental Risk

A hint of the climate that lies ahead

It’s one of the basic tenets of best practice corporate governance – and in what could become a global test case, a number of shareholders of the Commonwealth Bank of Australia don’t believe their board is particularly first-rate in this regard.

I’m referring, of course, to the board’s duty to act with care and diligence and to take into account all known facts that might impact the longer term outcome of a strategic decision they make.

And the case in question deals with a group of shareholders who have – in what is a world-first – commenced proceedings against the bank on the grounds that it failed to adequately disclose the risks climate change poses to the business in its 2016 annual report.
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