Governance of Sustainability

How to embed the concept of sustainability is one of the key questions boards of directors and top management teams discuss in times of societal change and environmental challenges. These reflections are driven not only by self-reflection but also by capital market pressures and the consensus of public opinion. Unlike other issues on the corporate agenda, sustainability calls for a distinct approach to governance and raises questions about the foundation of corporate governance: the corporate purpose.

This book presents various perspectives on corporate governance of sustainability and sustainable corporate governance, bringing together viewpoints from 16 practitioners and academics. It offers practical insights, introduces new perspectives, and invites readers to reflect on their own approaches to integrating sustainability into corporate governance.



Prof. Dr. Michael Hilb is founder of DBP Group, chairs the Board Foundation, and serves on several boards of directors and trustees. He is a titular professor at the University of Fribourg and teaches strategy, entrepreneurship, and corporate governance at universities in Asia and Europe. Michael Hilb graduated from the University of St. Gallen with an MSc and a PhD and was a Visiting Fellow at Harvard University and INSEAD.



Introduction 5

From Corporate Governance of Sustainability to Sustainable Corporate Governance

Michael Hilb 9

Section A: Conceptualizations 17

Climate Governance: Recoupling the Sustainability and Value Perspectives

Boris Galonske 19

Assessing the Sustainability of the Business Model: Firm Governance Using the Sustainable Value Creation Framework and its Measurements

Tomas Casas-Klett and Martin Nerlinger 33

The Multipurpose Corporation as a Driver for Sustainable Value Creation

Michael Hilb 54

Section B: Interpretations 63

Trust as a Key Aspect of Sustainable Corporate Governance Elena Szederejei and Roderik J. P. Strobl 65

Cooperation and Inward Social Sustainability

Stefan F. Meier 72

Defining Corporate Digital Responsibility

Monique J. Morrow 85

Section C: Applications 91

Sustainability as Value Driver: The Corporate Governance Perspective

Reto Schnarwiler 93

The Relevance of Shareholder and Stakeholder Engagement for the Board of Directors

Barbara Dubach and Laura Brechlin with Mirjam Staub-Bisang 102

A Practitioner's View: Three Tales of Ambiguity in Governing Sustainability

Peter Brändle 111

Section D: Implications 121

Shaping The Future Boardroom: 10 Steps Toward Good Climate, Biodiversity and ESG Governance

Helle Bank Jorgensen 123

The Positive Impact Board - The Future-relevant Business Focus

Katrin Muff 135

The Strategic Responsibility of the Board of Directors for Comprehensive Sustainable Corporate Governance

Antonio Hautle 143