News: CCE contributes to new publication, ‘For the World’s Profit’ 

06 Jan 2025

Emily Farnworth and Dr Eldrid Herrington have co-written one chapter of a book called For the World’s Profit, which will be published by the Brookings Institution Press on 10 January 2025. 

The chapter written by Emily Farnworth (CCE Director) and Eldrid Herrington (Head of Academic Engagement) is entitled ‘Key Actions for Corporate Boards in Accelerating Sustainable Development’. It explores the trends shaping corporate governance, focusing on boards’ roles in driving sustainable development across their operations and value chains. Practical guidance includes a framework for board action and recommendations for directors and policymakers to integrate climate considerations into boardroom strategies. 

The launch event will take place on Friday 10 January at 9:30 am EST/2:30pm GMT and is free to watch online. Register here

“Corporate boards have a pivotal role in navigating the business risks and opportunities resulting from the climate and nature crises. Their leadership is critical in aligning corporate strategies with global goals. This new publication will help to guide them in this journey by giving practical advice on how to strengthen sustainability competence and governance structures, ensuring directors are equipped to handle the complex challenges facing future business success.”  

Emily Farnworth, Director CCE

Key takeaways  

  • Evolving corporate governance: Leading boards are transitioning from a solely shareholder-focused model to a broader stakeholder stewardship model. This involves considering a wider range of stakeholders such as employees, customers, communities, and governments alongside shareholders. 
  • Sustainability as strategic governance: Boards need to embed sustainability into their strategic decisions, moving beyond short-term financial metrics to long-term value creation. Frameworks like the Sustainable Development Goals (SDGs) and the Task Force on Climate-Related Financial Disclosures (TCFD) provide a foundation for linking sustainability to financial impact. 
  • Material risks and double materiality: Boards are encouraged to assess both how environmental and social issues affect the business (single materiality) and how the business affects these external factors (double materiality). This approach aids in finding business opportunities that are both profitable as well as beneficial for people and the planet. 
  • Climate and nature-related risks: Increasing regulatory and investor pressures are pushing companies to adopt frameworks like TCFD and TNFD for risk assessment and disclosure. High-profile reports and agreements, such as the Stern Review and the Paris Agreement, have helped to inform board-level discussions around climate action. 
  • Stakeholder engagement: Boards are urged to engage diverse stakeholders, including  institutional investors, and civil society, to align corporate goals with societal expectations and enhance transparency. 
  • Governance structures: Many boards are setting up dedicated sustainability committees to help manage sustainability issues, though care must be taken to integrate sustainability into overarching corporate strategies. 
  • Skills and leadership: Effective boards need a mix of skills, including sustainability expertise. Non-executive directors with long tenures are well positioned to take a stewardship approach to long-term planning. 
  • Collaboration and regulation: Boards can influence systemic change by supporting sustainable regulations, incentive mechanisms, and large-scale collaborative initiatives that address governance gaps and market failures. 

About the publication 

The Brookings Institution Press is the renowned publishing arm of the Brookings Institution, a leading think tank in Washington, D.C. Brookings and its scholars are known worldwide as a trusted resource for rigorous research and innovative ideas across fields such as foreign policy, American politics and governance, current affairs, metropolitan policy, economics, and development.  

See more and order the book here: https://www.brookings.edu/all-books/