Good governance

Over the past 50 years, an “unnoticed apocalypse” may have killed off half the planet’s insects. This is the opening line of a World Economic Forum feature on 25 Nov 2019. It is a sign of the times that this is getting the attention of the World Economic Forum and we really need to sit up and take notice.

- Professor Owen Skae

The author of the feature, Johnny Wood, says the factors contributing to the decline of the insect population include climate change, overexposure to chemicals used in fertilisers and pesticides, which are deadly for insects, and the loss of natural habitats through human development and agriculture. This includes the disappearance of vast expanses of flower-rich habitats on which bees and other pollinating insects depend.

According to Emeritus Professor Stuart Reynolds of the University of Bath, UK, we’re talking about a loss of millions of species. He explains that if the current rate of decline continues, it could have catastrophic consequences for the planet and everything that lives on it, including humans: The role allotted to all these tiny creatures in the grand scheme of nature is to eat and be eaten. Insects are the key components of essentially every terrestrial food web. And so it’s obvious that when insect numbers decrease everything higher up in the food web will suffer. This is already happening …

But what does this have to do with good governance? Everything. First of all, we’re talking about critical biodiversity and ecosystems without which we cannot survive. And therefore the question that business is now being pressed to answer as part of good governance is: Can a board of directors contend that the business model of a company is sustainable without dealing with the risks of climate change and biodiversity and species extinction?

This was addressed in a fascinating presentation at a colloquium of the Good Governance Academy held at the Regenesys Business School in Johannesburg on 28 November 2019. The patron of the Good Governance Academy, which was launched in 2018 (https://thegoodgovernanceacademy.com/) is Professor Mervyn King, who, as we all know, has pioneered the path of integrated reporting.