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In addition to the business and context related risks that many companies monitor and seek to mitigate, there are also background global risks and existential threats that could have catastrophic consequences for societies and social and economic systems.
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The global mean temperature for the twelve months from February 2023 to January 2024 was the highest on record. At 1.52°C above the 1850–1900 pre-industrial average, it already exceeds the legally binding 2015 Paris Agreement target limit of 1.5°C.
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Greenhouse gases and global temperatures continue to increase. As and when the remaining tipping points are reached, global warming may become unstoppable. Widespread damage to ecosystems is occurring, and a mass extinction of species is underway. Finite natural capital and scarce minerals are being rapidly consumed.
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Board priorities and boardroom practices for 2024 will depend upon the extent to which directors recognise realities, widen their perspectives, and change direction to address the consequences of past decisions and policies.
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Prepared boards recognise that radical measures can arouse strong emotions. They identify and monitor supporters, opponents and potential allies.
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Directors face multiple challenges, imperatives, and stakeholder requirements. These can arise from internal business model and strategy drivers and/or external developments in the legal, regulatory, and geopolitical contexts in which companies operate.
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Being a director can involve tough decisions. Critical choices are increasingly stark and difficult to resolve. Some board members may have concerns about the positions taken by others. Such differences and how to proceed or...
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The international economy, like the world order, is changing as new fault lines emerge and different practices and strategies evolve. There are fundamental differences in the responses of companies as well as Governments to...
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Expectations of boards, the challenges, pressures and opportunities they face, and the environments, situations and contexts in which they operate are changing. The approaches and strategies boards adopt, the strategic direction...
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Directors and boards vary in their interpretation of ESG aspirations, requirements and considerations, the priority they attach to them, and in their assessments of their importance to investors and other stakeholders. Some take...
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Director-General of IOD India for UK and Europe operations
Prof. (Dr) Colin Coulson-Thomas, President of the Institute of Management Services and Director-General of IOD India for UK and Europe operations. He has advised directors and boards in over 40 countries.
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