Review of Financial Markets: February 2022

The February 2022 issue of Review of Financial Markets looks at a new model of corporate governance, and boards' mindsets as a powerful lever for change 
Edited by George Littlejohn MCSI, senior adviser to the CISI

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Serving growing client demand in climate's other challenges

Extract from introduction by George Littlejohn MCSI

There has been extraordinary cooperation between standard setters and framework providers to create sustainability reporting that is as reliable as mainstream financial reporting has become, and indeed to put it in the mainstream. That is important because it means investors and their advisers can have a much clearer picture of how companies in which they are invested are meeting the sustainability requirements that are a growing part of their requirements. This collaboration amongst standard setters has been led by the International Financial Reporting Standards (IFRS) Foundation which has expanded its mandate to establish a Sustainability Standards Board (SSB).

Professor King, writing in the introduction to a major new work on ‘Corporate Governance 3.0’, comments: “The more informed corporate reporting is, the more transparent is the board’s accountability but sustainability standards need to be as reliable, consistent and rigorous as are financial reporting standards. The intent is for the SSB to lie alongside the International Accounting Standards Board (IASB) both under the oversight of the IFRS.” 

Across the southern seas, in Sydney, Clare Nickson Havens has produced fascinating research on the importance of financial boards’ mindset in dealing with the climate – and other challenges.  

The emergence of a new model of corporate governance

Alexander Van de Putte, professor of strategic foresight, IE Business School and chair of corporate governance and stewardship at the Astana International Financial Centre, predicts the future for boardrooms. 

Footnotes

The future of leadership in financial institutions

Clare Nickson Haven’s postgraduate research into sustainability leadership at the University of Cambridge Institute of Sustainability Leadership focused on governance and climate response, specifically the active mindset of bank board directors regarding climate response. Clare’s research was supervised by Dr David Good of the department of psychology.

Developing an active mindset model to help address climate changeClare's research, explained in more detail in this article, indicates that board directors have ‘dynamic capabilities’ that can give firms a competitive edge. 

References
And from our 'poet-in-residence', Nigel Pantling, Chartered FCSI

Dot Com 2000

We’re meeting in a café: his offices
are chock-a-block with new recruits. 
He’s saying that the ways I know have gone.
Everything that can be digital will be digital.

If I don’t invest now I’ll miss my chance
to ride the boom.  He spreads his arms.
He smiles. He invites me in.  I look away,
to a framed photograph above the counter.  

A man at lunch on a New York beam,
in flat cap, bib and brace, laced boots,
flask and tin box set beside him
and by the box, a hard-boiled egg.

Cigarette in hand, he’s staring ahead,
confident of what the lens will capture.
And all the while the egg is rolling,
rolling, rolling, closer to the edge.

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Published: 07 Feb 2022
Categories:
  • Wealth Management
  • Training, Competence and Culture
  • Risk
  • Corporate finance
Tags:
  • Sustainability Standards Board
  • International Financial Reporting Standards
  • corporate governance
  • active mindset
  • RoFM
  • Review of Financial Markets
  • responsible finance
  • green finance
  • ESG

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