The Romanian Independent Directors Association (AAI) has announced that it has joined the Climate Governance Initiative as host of Chapter Zero Romania, its Romanian Chapter. KPMG in Romania has also stepped forward as a Supporter and Content Partner.
The Climate Governance Initiative (CGI) is a global community of non-executive board directors and subject matter experts, organized in national associations (“Chapters”), who promote the adoption of the World Economic Forum’s Principles for Effective Climate Governance by mobilizing, educating and equipping their members with the skills and knowledge necessary to address climate change at board level. There are currently 16 established chapters which have committed to upholding the CGI Charter, and many more have plans to launch soon. The secretariat of the CGI is hosted by the Hughes Hall Centre for Climate Engagement at Cambridge University.
Chapter Zero Romania is Romania’s representative in the international network of the Climate Governance Initiative. For the development of Chapter Zero Romania, AAI will work together with a group made up of experts on climate governance and non-executive directors. Through the Climate Governance Initiative, members of the boards of Romanian companies will have access to resources as well as local and international events on this subject and will contribute to the global network dedicated to effective climate governance.
Chapter Zero Romania’s goals are for Boards of Directors of Romanian companies to:
- Gain a full understanding of their legal duties and obligations as directors in relation to the climate crisis and its implications for their business.
- Improve their understanding of the science and economics of climate change.
- Gain an understanding of the risks and opportunities for their business of climate change, and thereby the ability to design effective strategies for the transition to a net-zero economy.
- Encourage informed debate and constructive responses to the climate challenge in the boardroom.
- Ensure that climate-related factors are considered in all Board and Committee decisions, including those related to Audit, Remuneration and Nominations, hence improving their companies’ resilience.
Simona Fătu, President of the Independent Directors Association, commented: “Our association is delighted to be hosting the Romanian Chapter of this leading global forum on effective climate change governance. We are very pleased to be working, through the Climate Governance Initiative, with experts and business leaders in Romania and around the world, all confronting similar issues”. In terms of Chapter Zero Romania’s priorities and values, which AAI will promote, Sorana Baciu, Chapter Zero Romania’ Founder, said: “Chapter Zero Romania is proud to contribute to the global efforts to raise awareness of climate change risks and consequences, as well as of the means to reduce their impact and identify positive business opportunities. Our goal is to ensure that climate change will be an ever-present item in the discussions of the boards of Romanian companies”.
In terms of the AAI’s role in encouraging the adoption of CGI principles in Romania, Karina Litvack, Chair of the Climate Governance Initiative’s Governing Board and Board Director of energy company Eni S.p.A said: “Across the world, directors are recognizing the crucial role they have to play in the business response to the climate emergency, and are enhancing their capabilities to ensure long-term stewardship of the companies on whose boards they serve. We are delighted that the AAI is hosting the Climate Governance Initiative and has committed to providing directors in Romania with access to the skills and knowledge necessary to transition to a zero-carbon economy, and ensure the long-term resilience and business success of their companies.”
Referring to KPMG’s role in joining the Climate Governance Initiative’s Romanian Chapter, Ramona Jurubiță (photo), Country Managing Partner, KPMG in Romania, explained: “We have joined the Climate Governance Initiative not only because we stand ready to contribute our expertise and resources to assist board directors in facing the challenges of climate change, but also because we can assist Chapter Zero Romania in its efforts to offer members support in designing effective climate transition strategies, adapted to each sector, closely supporting institutions to help them find their way in dealing with the challenges in moving to a zero carbon emissions economy. As directors take on this leadership role, they will need to introduce effective climate governance into the decision-making of corporate boards, and they will discover that economic efficiency is not incompatible with ‘green responsibility’.”
The Chapter Zero Romania webpage details the cooperation between AAI and KPMG in Romania to enable the implementation of the World Economic Forum’s Principles in the boards of companies in Romania.