Climate Governance Study 2024: Moving from vision to action

In 2024, Australian directors are intensifying their focus on climate change, yet organisations face growing challenges in executing their strategies.

Despite several years of significant strategic and economic challenges, Australian directors report a persistently high level of concern regarding climate-related risks to their organisations, with 80 per cent saying their boards are concerned about climate change as a material risk.

A clear majority of directors (60 per cent) believe their boards should pay more attention to the subject and a third of Australian boards have reassessed their organisational strategies in response to climate risk and opportunity.

The Climate Governance Study 2024 is a joint publication by the AICD and Pollination, for the Climate Governance Initiative Australia. It builds on a survey of 1,057 AICD members, along with interviews and group consultations with 24 senior non-executive directors.  

The intention of this study is to act as a ‘temperature check,’ assessing how perspectives and actions on climate governance are evolving among the Australian director community since the AICD’s inaugural Climate Governance Study in 2021.

Overall, it finds fluctuating levels of board and organisational activity on climate change, with significant differences between sectors. 

The accompanying Australian Market Snapshot details the better governance practices that have evolved in the past few years and provides guidance and recommendations for directors that are relevant to all sectors.  

The report finds that the stakeholder landscape is becoming increasingly diversified, and the rising pressure from regulators and policy makers is acting as both driver and drag on climate transitions. In this context, the study also conveys a practical message to policy makers and investors.