Reference no: EM133004269

Problem-solving assignment

Task - do directors need to care about climate change risk?

Write a report on the directors' duty of care in relation to climate change risk. By way of background reading, consider the way in which investors are making climate change risk a real issue for boards.

One year ago, Whitehaven Coal received a notice of a resolution that shareholders wished to place on the AGM agenda to the following effect:
Shareholders request the company disclose, in subsequent annual reporting, a plan that demonstrates how the company will wind up its coal production assets and operations in a manner consistent with the climate goals of the Paris Agreement.

(Links to article by Michael Slezak "Investors are trying to shut down fossil fuel companies from the inside - this is what they're doing" and Whitehaven Coal's AGM documents provided in the QUT library through QUT Readings app).

Assume that you are writing the report for a client, an Australian company board in a similar industry to Whitehaven Coal. Your client is concerned about activist shareholders targeting it. Structure your report to address the following points as to directors' duty to consider climate change risk:

a) Identify the source of the relevant directors' duty
b) Discuss the standards expected
c) Advise how this applies to climate-change issues in the client's business/industry
d) Provide 3 suggestions of actual strategies as to how your client board may discharge their duty
e) Conclude your report with one PowerPoint slide with the 3 key messages to present to the client. (The slide is not included in the word count).
A couple of points to think about before you start:
· QUT encourages authentic assessment exercises; in drawing your attention to unfolding events there will be some uncertainty and ambiguity. As you are emerging business leaders, you should embrace ambiguity. As the case study is based on real events, I acknowledge that the circumstances could be confronting. The case study is background reading and may help you in

developing strategies in part d, but it will not answer the entire assignment question for you. · You are writing the report for a business audience, for example, as a consultant to a board of directors. Concluding with 1 slide encourages you to think about this audience. Make the slide as interesting and focused and authentic as possible. Business leaders are busy, so don't make your slide too much work to read.

· You are expected to focus on the Australian law in your answer.
· This issue may seem challenging or unfamiliar to you to start with but begin with basic principles. It will be a very timely and interesting journey of discovery for you.