Revised ASX Corporate Governance Principles increase focus on climate change, environmental and social risks

by Carol Adams Main points: The ASX has released revised Corporate Governance Principles The term ‘social licence to operate’ has gone following consultation feedback Climate change and sustainability risks gain prominence Reference made to TCFD, GRI, CDSB and IIRC disclosures / Frameworks Importance of stakeholders to long term value creation is emphasised The Australian Securities […]

What does investment stewardship mean in the era of climate change and the Global Goals?

by Carol Adams Main points: The UN SDGs provide a useful framework for investors to consider social and environmental risks The UK Financial Reporting Council’s (FRC) revised Stewardship Code recognises that climate change poses risk to investment beneficiaries’ returns Responses to the Australian Senate Inquiry on the SDGs emphasised the role of investors Investment stewardship, […]

Let’s Talk Value: How Universities Create Value for Students, Staff and Society

Main points: Universities contribute to solving the world’s challenges and improving future workforce skills A focus on value for money, efficiency and outputs sells universities short Integrated reporting has improved university decision making and helped them raise funds Universities can improve their annual reporting – they have largely ignored 20 years of developments in sustainability […]

ASX consultation on Corporate Governance Principles

by Carol A Adams Main points: ‘Social licence to operate’ is inappropriate as a frame for determining climate change and other sustainability risks Boards should identify sustainable development risks in their external environment Climate change and sustainability risks should be on the Board skills matrix Minimum gender targets for women should be enforced The ASX […]

Bringing to life the value creation process in corporate reporting

by Kerry Hicks, Senior Policy Advisor, Australian Institute of Company Directors The reporting process should be seen as an investment which can bring huge rewards, says Dr Carol Adams. This interview with Carol Adams was first published by the Australian Institute of Company Directors here Dr Carol Adams is an author, consultant and Non-Executive Director […]

Corporate Governance Code consultation tackles the big issues

by Carol A Adams Ethnic diversity, the UN Sustainable Development Goals, wider stakeholder interests and encouraging a longer-term focus are some of the issues considered in the UK Financial Reporting Council’s (FRC) consultation on the revision of the Corporate Governance Code. Elsewhere many corporate governance codes are yet to address these issues and, whilst the […]

The role of boards in enhancing the credibility of integrated reports

By Carol A Adams It is a clear expectation that Board members are financially literate and any Board using a skills matrix will encapsulate this in some way.  But what about an understanding of value beyond profit? Or of the broader risks and opportunities that lead to, or threaten, value creation? Integrated reports are designed […]

Conceptualising the contemporary corporate value creation process

By Carol A. Adams The purpose of this paper is to examine and explain the complex interrelationships which influence the ability of firms to create value for their providers of finance and other stakeholders (loosely referred to in practice as “integrated thinking”). In doing so it examines the interrelationships between: environmental, social and governance (ESG) […]

Changing views from the Board on the meaning of value

by Carol A Adams In this CPA Australia podcast I discuss research which explores the interrelationship which influence corporate ability  to create value as broadly defined by the International Integrated Reporting Council. It discusses insights from interviews with Board Chairmen and Non-Executive Directors of major South African and Australian companies.  The research was funded by […]

Paul Druckman discusses the meaning of value creation

In this video Paul Druckman discusses the complexity of changing the capital market system given diverse stakeholder interests and the approach that corporate boards should take to the governance of ESG issues in light of the VW scandal.  He responds to criticisms by some academics that the International Integrated Reporting Council (IIRC) has moved away from […]