Climate Change and Corporate Governance: A Literature Review on The Key Principles for Effective Climate Governance
The call for climate-related governance to help the environment is becoming more evident, as news about natural
disasters keep on appearing since the year began. As the countries and companies affected suffer from economic losses, the
motivation to improve and mitigate such potentially catastrophic consequences becomes a priority for everyone around. Agreements
that target for a cleaner and greener environment on a global level are already ongoing. To acknowledge this, business corporations
factor climate change into their corporate initiatives and practices, so that risks are accounted for. The only question now is, if they
are effective and being properly integrated into the policies. The literature provides an overview of the identified financial risks and
key guiding principles for effective corporate governance, which developing industries in the Asia Pacific may adapt to mitigate the
negative effects brought by climate change. Sample cases that companies use will also be included. This study will not cover every
area regarding corporate governance and is limited to selected foundational guidance that may cater to the different sectors and
industries across Asia.
Keywords - Climate Change; Corporate Governance; Risks; Guiding Principles; Asia Pacific.