Framework for Board Oversight of Sustainability

Abstract

Corporate governance is the responsibility of the company’s board of directors, which is charged with designing, implementing and monitoring the structures and processes for the direction and control of the company. The fiduciary duties and responsibilities of directors are derived from a variety of legal and regulatory sources including statutes, case law and rules developed and imposed by securities regulators. This chapter provides an overview of the legal and regulatory standards that must be understood by directors and the steps that must be taken by the entire board to ensure that directors meet the expectations of investors and other stakeholders relating to oversight of sustainability including the establishment of an oversight framework, allocation of responsibilities to board committees, managing the composition of the board and providing directors with adequate and relevant sustainability education and training.