Governance effectiveness rests not only on structures and processes but also on culture. Culture is what enables an organization to pursue its long-term purpose and vision, shaping how decisions are made, how risks and opportunities are weighed, how investment is approached and how resilience is built. It influences how confidently the board and management address climate and nature as drivers of innovation, capital allocation and long-term competitiveness. A boardroom culture that supports open dialogue and purposeful inquiry, reinforced by conversational receptiveness that encourages listening and constructive response, equips directors to navigate complexity, interrogate assumptions and consider long-term positioning in the face of disruption.11 This becomes particularly important as boards weigh the implications of transition pathways and nature dependencies. The tone set by the board also defines expectations for management, influencing how goals are established, performance is assessed and values are reinforced throughout the organization. A foundation for effective oversight → Culture is what allows accountability, risk governance, strategy and transparency to be applied with rigour. When trust, respect and curiosity are embedded in boardroom dynamics, directors are better equipped to: –Strengthen accountability through constructive challenge and clear expectations –Deepen oversight of risks by encouraging debate and diligence, including around compounding and non-linear risks associated with climate and nature –Spot and shape opportunities by testing emerging ideas, exploring competitive advantage and assessing value creation in areas such as low-emission innovation, resource efficiency and ecosystem restoration –Sharpen strategic direction by creating space to weigh trade-offs and explore long-term implications –Elevate disclosure by reinforcing clarity, integrity and honest communication with stakeholders –Reinforce values that shape organizational culture and behaviours beyond the boardroom Norms that encourage people to work together can further amplify these effects, building trust, collective energy and momentum for sustained action.12 Embedding a culture of innovation → Culture in the boardroom shapes how openly directors approach uncertainty, how capital is allocated and how confident organizations feel in pursuing new ideas. When boards cultivate curiosity, collaboration and adaptive leadership, they create the conditions for resilience and long-term value creation. Board culture is a core factor in driving innovation, providing the conditions for organizations to adapt and evolve.13 In practice, this determines how effectively organizations invest in new technologies, form partnerships and innovate in response to climate and nature challenges, turning pressures into opportunities for growth and competitiveness. Guiding questions for board reflection Question 1: How do our board discussions on climate and nature demonstrate curiosity, challenge assumptions and drive purposeful action? Question 2: How do we elevate the importance of climate and nature to our organization through our questioning, decision-making and resource allocation? Question 3: How do our performance expectations, training and incentives reinforce behaviours that build climate and nature resilience across the organization? Question 4: How does our organizational culture enable us to identify and capitalize on climate and nature opportunities while managing risks effectively? Question 5: How do we know whether our culture is driving innovation and competitive advantage in response to climate and nature challenges? Guiding questions for boards to ask of management Question 1: How does management promote a culture that supports accountability, innovation and openness to the impacts of climate and nature on our business? Question 2: How do we assess whether our culture supports effective climate and nature governance? Board Leadership for Growth and Resilience 14

Board Leadership for Growth and Resilience 2026