Developing Global Institutional Frameworks for Corporate Sustainability in the Context of Climate Change: The Impact upon Corporate Policy and Practice

Abstract

This chapter examines the rapidly developing global institutional frameworks for corporate sustainability occurring in response to imminent climate change. Corporations need to engage fully and responsibly in the urgent tasks of adaptation and amelioration required to remedy the damage caused by their earlier externalization of the costs of emissions and other pollution and reach for the objective of eliminating future carbon emissions. Guiding and facilitating this immense paradigm shift in corporate sustainability is a vast framework of international and civil institutions focusing on different elements of the transformation process. The resulting widening scope of corporate directors’ duties in this more dangerous context is considered. Finally, the remarkable burgeoning of international institutions and agencies advising and monitoring corporations on climate change, carbon disclosure, responsible investment, and integrated reporting are examined. Collectively, this huge and multifaceted effort by both business and civil society, by all the agencies and initiatives discussed, represents a great advance in the campaign for corporate environmental, social, and governance responsibility. The ideals manifested are often exemplary, and whatever weaknesses and limitations revealed in the complex challenges these initiatives face, in aggregate, the initiatives do represent a significant institutional development in the cause of corporate responsibility.