What lies ahead for corporate governance?

In this article, published by Informed, the IR Society quarterly journal, Chris Hodge, Special Advisor at Morrow Sodali, discusses the future of corporate governance and ESG considerations. He highlights the five key points for companies to keep on their radar in 2024:

Climate Change and Sustainability will continue to be dominant issues for companies and investors. Progress was made in 2023, but much remains to be done. The International Sustainability Standards Board (ISSB) published its first two standards, which are now in effect.

Political Commitments and Pushback. The commitments made at COP28 were criticized for not going far enough to meet the Paris targets. As progress is made, there is also increasing pushback, some of which is politically inspired.

Political and Reputational Risks will continue to be issues that Boards need to be aware of, especially for high-profile companies that may become the target of politically inspired criticism.

There are increasing expectations on Boards around ESG, AI, and cyber issues. Boards must ensure they do not lose sight of their core functions while adapting to new challenges.

Alertness and agility will be key characteristics for Boards in 2024 if they are to adapt to rapid external changes while continuing to pursue their long-term strategic direction.

The full article can be accessed here (IR Society members only).