When and How Boards should Redefine their Corporate Strategy due to Evolving Regulation
- Impact Boards EM
- Oct 25, 2023
- 2 min read
Updated: Apr 16
On 25 October 2023, Impact Boards EM hosted an online roundtable to discuss "When and How Boards should Redefine their Corporate Strategy due to Evolving Regulation". The video recording is available to view for our members on our website.
The summary of the online roundtable discussion is available to view here. The panellists highlighted the following challenges faced by board members in emerging markets (EM) due to increasing regulations:
1. ESG is still not a top priority on the agenda, especially in emerging markets. While board members may have some familiarity with ESG questions, it is not a realistic focus for all EM jurisdictions. Each market has its own unique context and what works in one country may not
work in another.
2. Framework conditions and regulatory environments cannot be changed by individual board members alone. Collaboration and alliances are necessary to influence and shape these conditions. International organizations like the IFRS Foundation provide opportunities for emerging countries to participate in the development and discussion of ESG framework conditions.
3. The focus should be on understanding the impacts, risks, and opportunities associated with ESG and sustainability, rather than just complying with individual regulations. Companies need to be
aware of their own specific impacts and risks, and operate accordingly. Transparency around these aspects will naturally align with regulatory requirements.
4. Regulation should be viewed within the broader context of operational application, impacts, risks, and opportunities. It is essential to consider multiple stakeholders and navigate the complexities of a multistakeholder world in order to arrive at effective solutions.
5. The renewable industry heavily relies on components from emerging markets, even when they are installed in Europe and the US. Companies in this industry are actively working towards reducing their emissions (scope one, two, and three) and demanding net zero pathways for their
entire supply chain. This trend is already impacting major companies and is equally relevant for emerging companies.
Detailed summary available to view here.
