Aligning ambition and investment → for long-term value Boards play a decisive role in shaping strategies that can withstand disruption and remain true to an organization’s long-term purpose and values. Responsibility begins with understanding how climate change and nature loss may affect strategic direction, financial performance and the competitive landscape. These insights set the foundation for decisions that are both resilient and forward-looking. For strategy to create lasting advantage, it must be grounded in the organization’s purpose and vision while also recognizing climate and nature as fundamental drivers of change. When these forces are overlooked, strategic choices risk being built on assumptions about a business environment that no longer exists. Boards translate this understanding into action by aligning ambition with investment and directing resources toward priorities that strengthen resilience, unlock opportunity and bolster competitiveness. This oversight includes: –Testing the resilience of the business model in the face of disruption –Guiding investment in innovation to create competitive advantage –Challenging assumptions about future competitiveness, policy and market dynamics –Assessing how emerging stakeholder expectations shape opportunities for growth –Drawing insights from collaborations with customers, suppliers and other stakeholders to anticipate shifts in demand and align strategy with external conditions Positioning for growth and resilience → Boards have a central role in guiding the organization’s response to climate change and nature loss. Integrating these considerations into strategy directs attention to how these forces will reshape markets, investment priorities and sources of differentiation. By treating climate and nature as drivers of change, boards can identify opportunities in areas such as clean energy, sustainable finance, regenerative agriculture and circular business models, while also anticipating where existing models may need to adapt. This insight strengthens the organization’s capacity to respond to disruption with confidence, capture growth from emerging climate and nature markets, and maintain relevance in a rapidly evolving environment. Guiding questions for board reflection Question 1: How well does the board understand how climate and nature factors could impact or benefit the business, and in what ways are these considerations integrated into strategy? Question 2: What changes might we need to make to our business model or operations to stay competitive as climate and nature issues evolve? Question 3: How are our performance measures and management incentives driving the climate and nature actions we need to create value? Question 4: How can we effectively test if our strategy is compatible with likely changes to climate- and nature-related regulations? Question 5: What reliable ways do we use to keep abreast of climate and nature issues relevant to our business, and are we using this information to inform our decisions? Guiding questions for boards to ask of management Question 1: How are climate- and nature-related risks and opportunities built into our strategy, capital allocation and planning, and how often does the board review progress? Question 2: How have we tested whether our business model is resilient against both transition risks (e.g. policy changes) and physical risks (e.g. extreme weather events), and what does this mean for our long-term viability in a low-carbon, nature-positive economy? Question 3: Do we have the necessary systems, processes and decision-making structures to support consistent and informed action across the organization? Question 4: How do we compare to peers in our ambition, strategy and investment planning? Board Leadership for Growth and Resilience 18

Board Leadership for Growth and Resilience 2026