This report finds Australian company directors lack the skills and experience to lead the corporate transition to net zero emissions by 2050 and it is unclear how they are addressing this gap.

The analysis, which studies fifteen of Australia’s most carbon intensive companies, sets out investor expectations of company boards and their management regarding climate change risk, particularly for companies highly exposed to climate-related transition risks. It also provides guidance on what outcomes investors want to see directors and boards deliver as companies set out their net zero ambitions and approaches.

Key points:

• Investors are increasingly putting pressure on company board directors to address the systemic risks of climate change.
• Many Australian company directors of climate risk exposed companies lack the skills or experience in climate change risk, company transformation and disruption that they will require to lead the corporate transition to net zero emissions by 2050.
• Investors expect the company climate transition strategy to be fully integrated into the overall company strategy.