Corporate Governance for Sustainability Needed for a Green Economy

Corporate Governance for Sustainability Needed for a Green Economy

Meeting the challenges of climate change and a global transition towards a sustainable economy is such a monumental task that it requires the suitable governance structures that are able to channel corporate and other resources toward sustainability. This post covers some of the issues in this important subject including carbon lock-in, shorthand for the “interlocking technological, institutional and social forces…that perpetuate fossil fuel-based infrastructures in spite of their known environmental externalities”. It suggests a four pronged approach combining regulatory requirements, economic incentives for sustainability, public pressures, and finally to restructure the foundations of corporate governance to serve multiple stakeholders.