Monday, January 15, 2018

Giving the Earth a seat on corporate boards

No, the Earth doesn’t actually sit down in the boardroom, but this Cambridge Program is driving boards to integrate sustainability into boards’ duties.

It’s time, [Phillipe] Joubert asserts, to acknowledge the true value of nature, which means starting to calculate the environmental costs of producing a product. “If we don’t do this we’re distributing fake profits ..... .and paying fake bonuses and fake dividends.”  The argument is that without accounting for nature’s services, we can’t know the real value of a company.
He talks of an “earth-competent” board whose members understand sustainability, ask the right questions of management, and exercise their fiduciary duties. Part of this is a duty to respect nature, he says, “which is absolutely consistent with acting in the interest of the company they lead”.

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