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Getting Natural Capital on the Boardroom Agenda

October 06, 2016 |


This article was originally posted on Natural Capital Lab.

In the business community, many of us have heard the phrase “tone at the top” – this refers to how the management team and the board of directors set expectations about organizational culture in the context of achieving a company’s vision, mission and strategy.

“The “tone at the top” is often considered to be the standard for the types of behaviours expected across all levels of the organization. Put another way – it is the management team and board of directors articulating what matters most to them and how they are trying to achieve the organization’s goals in the short, medium and long-term.

If the “tone at the top” sets the mandate for expected behaviours in support of achieving the company’s vision, mission and strategy, we need to be considering how natural capital can become a core factor in discussions amongst these influential players.

A growing body of research shows that investors may serve as a primary driver for corporate leaders to pay greater attention to natural capital. Investors continue to display an increasing interest in how an entity will preserve, enhance and create value over the long-term as part of their investment decision-making. In particular, many shareholders are taking notice and making a greater effort to better understand the environmental and social risks in existing and potential investments. Further, they have a growing interest in board governance regarding such issues…”

Read on at: Natural Capital Lab.

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