TSB Global Advisors hosted a virtual roundtable on the 13th of June 2024 with Executive Advisor Frederik Otto and Senior Advisor Beatriz Araujo, World Economic Forum Governance Expert and former Head of Corporate Governance at Baker McKenzie.
The outcome of the call was a global view on structuring sustainability oversight at the board level with a focus on stakeholder engagement and governance.
The key takeaways were:
ESG Oversight and Stakeholder Governance:
Companies must balance shareholder returns with stakeholder engagement for long-term success.
The governance framework should help in better decision-making and compliance.
Director Duties and Stakeholder Governance Framework:
Directors owe their duties to the company itself, ensuring its long-term success and considering stakeholder impacts.
The UK Companies Act explicitly requires directors to consider stakeholders in their decision-making.
Practical Implementation of Stakeholder Governance:
The aim is to ensure stakeholders' voices are heard in material decision-making.
A materiality assessment is essential for understanding which stakeholder issues are most relevant.
Effective stakeholder governance involves more than just formal reports; it requires meaningful engagement and consideration.
Beatriz Araujo is a Senior Advisor at TSB Global Advisors, World Economic Forum Governance Expert, and former Head of Corporate Governance, Baker McKenzie.
Until July 2023, Head of Corporate Governance (Legal 500 Band 1 team) at Baker & McKenzie based in the Firm's London office who has also served on the Firm's global Board, the Executive Committee. More than 35 years experience as a transactional and corporate advisor. Expertise in Corporate Governance and ESG.
In October 2009 I was elected by the global partnership to serve full time for a four year term on the Firm's global Executive Committee (EC). Prior to my election to the EC, I was a member of the London office's Board/Management Committee.
Baker & McKenzie's Strategy Officer at the World Economic Forum 2012-14. World Economic Forum Fellow since June 2020. Author of two White Papers of the Wrld Economic Forum in collaboration with Baker McKenzie. Co- Chair of World Economic Forum Global Future Council on Responsible Investing. Member of World Economic Forum Climate Governance Community of Experts.
Request access to the recording by sending an email to GA(at)sustainability-board.org
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