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Everything's Okay, Until It Isn't

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Everything's Okay, Until It Isn't 2017 board OCT / NOV roomMagazine of the Institute of Directors in New Zealand Everything’s okay, until it isn’t THE SUSTAINABILITY ISSUE THE SUSTAINABILITY ISSUE A note from the editor. Without doubt, sustainability is an issue that strikes at the heart of governance. Sustainability really means thinking The Agenda about the long term and that is what OCTOBER / NOVEMBER 2017 directors are responsible for doing. To drive sustainable business, we INSIDE IoD need strong leadership; sustainability issues are not quick fixes, and they CEO letter require commitment and investment. 05 Sustainability issues including action UpFront on climate change and the quality of 06 water have been at the centre of public 30 GLC update discussion recently. Increasingly, the public and other key stakeholders 33 DirectorVacancies are calling for business, as well as government, to take sustainability 46 Out & about seriously. A number of New Zealand 48 Events diary businesses, more than I could fit into one issue of BoardRoom, are working 50 Contact IoD hard to make a difference in this space. Commitment to sustainability from FEATURES Finally! Affordable & easy-to-use right at the top is a common thread between companies we profile including GETTING TO THE CORE 09 Getting to the core of software for small to medium business and New Zealand Post, Meridian Energy, OF SUSTAINABLE sustainable solutions Tourism Holdings Limited and Air SOLUTIONS / Four non-profits. Manage your board meetings, New Zealand (page 9) and Wakatū New Zealand busineses 16 A firm commitment: Incorporation (page 20). In the climate 09 working hard to create Sustainability critical change space, Emma Herd and Karen a sustainable future to business success responsibilities and documents in the cloud. McWilliams both discuss the risks that directors need to be aware of but also WAKATŪ / Juggling 20 Wakatū: A cause greater the opportunities that could come from responsibilities towards than profit operating in a low-carbon world. A level the land, the people and of courage is needed to take advantage profitability 28 Opportunities in a low- of these opportunities, and directors carbon world can do a lot to build a courageous culture within their organisations. 36 Board dynamics: Sharing 20 the vision One clear message is that sustainability is not a side project – it 42 Guiding long-term influences everything an organisation sustainable franchising / does, which is why directors are so Franchize important in this space. Emma FROM OUR PARTNERS [email protected] Start your free 18 The future of food / KPMG 26 Diversity key to successful trial today sustainability / Chapman Tripp 34 Climate change and ESG / Marsh Get organised Save time Reduce hassle BOARD DYNAMICS / BoardRoom is the magazine The specific challenges of the Institute of Directors in 36 faced by CEO/company New Zealand www.iod.org.nz founders moving to formal governance boardprohub.com Proudly made in New Zealand October / November 2017 3 CEO LETTER Climate change is of child labour or environmental not ‘fake news’, and damage and that their choices contribute to social good. sustainability is Recently, the $35 billion not just about the NZ Super Fund announced its reduction in high-carbon environment. In fact, stocks, with 40% of the overall fund now low carbon with the climate change is goal of making it more resilient becoming main stream to climate change. NZ Super Fund CEO Adrian Orr said its and is now critical to “focus on addressing climate change risk is in line with long-term business current global best practice by sustainability. institutional investors”. The NZ Super Fund transition involved relocating $950 million worth of shares away from companies with A new chapter in exposure to high carbon emissions. This is both a global sustainability and a local issue, and New Zealand companies affected Tēnā koutou Modern governance allows include Genesis Energy and NZ boards to take a position on Oil & Gas. KIRSTEN PATTERSON Climate change is not ‘fake economic and social issues they The new NZX Corporate CEO, INSTITUTE OF DIRECTORS news’, and sustainability is not could not or would not have Governance Code includes just about the environment. In done 20 years ago. Sustainability changes around disclosure fact, climate change is becoming is no longer a fringe issue but is of environmental, economic mainstream and is now on the agenda for many boards, and social sustainability risks. critical to long-term business with 56% of directors in the IoD This brings New Zealand into sustainability. 2016 Director Sentiment Survey line with many other countries YOUR SUSTAINABLE Despite popular opinion, saying environmental and social and is critical for trust and BOARDROOM directors are focused on the issues are very important to confidence in our companies long-term sustainability of their business. and our markets. Every effort has been made to guarantee the pages of organisations they govern, not Focusing on key strategic, Climate change and other this magazine are sustainably just short-term share prices. social, governance and sustainability issues are not sourced and produced. It has Take the 2016 Paris environmental risks and long- about compliance – actually, been printed using vegetable inks, environmentally friendly Agreement on climate change, term business sustainability it’s about survival. We need binding techniques and which was signed by 175 is fundamental to good leadership and genuine sustainably produced paper countries including New Zealand. governance. Transparency commitment from all boards and finally wrapped in eco- friendly degradable material. The goal is to stabilise global of corporate activities and for long-term sustainability. Follow the sustainable story warming at less than 2 degrees intentions helps build trust and Whatungarongaro te with some of the relevant Celsius below pre-industrial aids business resilience and environmental standards tangata toitū te whenua – as throughout the magazine: levels and move towards a long-term sustainability. man disappears from sight, the net zero carbon emissions Investors, shareholders and land remains. economy by the second half consumers are asking more The business conversation of the century. The Trump of businesses and getting on climate change is heating administration announced they tough on environmental and up, and if your business doesn’t If you could take a look inside, you’d see that an IT network is a beautiful thing. Finding the security gaps and were “definitely, completely social issues. Consumers have the issue on the agenda, vulnerabilities hidden within is almost an art form. Aura Information Security are trusted experts in cyber FSC MIX and undoubtedly leaving the want to know more about the you’re likely to get left out in security, providing advice and support to leading New Zealand corporates and government departments. Chain-of-custody certification accord”, yet over 1,500 United origins and composition of the cold. provides a credible link States businesses worth more products, employee conditions To test the integrity of your IT network call us on 0800 AURA 12. between responsible production and consumption than $1.4 trillion have committed and treatment, and corporate Ngā mihi of forest products. to the agreement despite their practices. They want to know Kirsten (KP) www.aurainfosec.com President’s opposition. they are not buying products THE ART OF CYBER SECURITY October / November 2017 5 KOR 0026 Aura Print ad - Boardroom.indd 1 15/03/17 12:44 PM UPFRONT IoD BY NUMBERS DISTINGUISHED Up as at 30 September 2017 FELLOW AWARDED Front Sir John Anderson has been 8,554 APPOINTMENTS Members made a Distinguished Fellow of the Institute of Directors. Dame Therese Walsh Chartered Member, 1,210 The Distinguished Fellow Award is has been appointed Chartered Members the IoD’s highest accolade, awarded to the Major Events and Fellows to members who have sustained a Corporate sustainability Investment Panel prominent and distinguished career starts with a company’s 9.5% as a director or given outstanding Rod Snodgrass Members under 40 participation and services to the IoD or Sir John Anderson, KBE DistFInstD value system and a has been appointed to eminent or special contributions to the the board of Metlifecare en·to·moph·a·gy community or business. principled approach to doing Mel Templeton Sir John has had an enduring Television New Zealand, WWF for Nature, Reon Edwards Wellington Branch 2016 the human use of corporate governance career spanning NZ Sports Foundation, New Zealand business. By incorporating has been appointed Emerging Director insects as food industries from financial services Cricket board, NZME, Capital Coast chairman of New Zealand Award Winner, has been to health, sport and entertainment. Health DHB and as Commissioner of the Global Compact Rugby League appointed to the board Relatively early in his governance Hawke's Bay District Health Board. principles into strategies, of the Centre for Space career, Sir John was appointed chair Recognised by his peers for his Sheena Henderson Science Technology FOOD FOR THOUGHT of the Petroleum Corporation of New work, Sir John has been the recipient of policies and procedures, has been appointed to and the IRD Risk and Zealand, charged with overseeing the numerous awards including the Sir Peter MOA Group Assurance Committee What are the foods of organisation’s restructuring and IPO. Blake Medal for Leadership Excellence and establishing a culture of the future? Supporters of Sir John say this was (2005), Halberg award for Leadership Mark Ratcliffe Congratulations to the early recognition from the Crown of Excellence in Sporting Organisations integrity, companies are not has been appointed to following members who Insects have long been part of the his ability to lead companies through (2010) and the Inaugural Distinguished the Housing New Zealand were appointed to the diet in many parts of the world, exceptional change. Fellowship award from INFINZ (2016). only upholding their basic Corporation Board following roles through and now western countries are Highly respected, Sir John is known He was appointed a Knight Commander DirectorSearch: starting to catch on.
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