Board Leadership for Growth and Resilience 2026

Seizing climate opportunities is no different from managing other risks; it requires focused attention, integration into the Board of Directors’ existing governance processes and conscious decisions. Peggy Smyth, Audit Chair, EtsyRisk and opportunity The board oversees material risks, opportunities and dependencies to protect and enhance stakeholder value. It considers how climate and nature both shape and are shaped by the organization’s activities and financial performance. Principle 3 Identify, assess and oversee climate- and nature-related risks and opportunities across the organization and over different time horizons, including risks and opportunities that are indirect, systemic or fast-evolving Support the use of scenario analysis to explore plausible futures, tipping points and thresholds, while interrogating management’s assumptions and materiality thresholds, including qualitative and long-tail risks Recognize the organization’s dependencies and impacts on climate, nature and society and how these, in turn, shape financial performance and position Balance near-term pressures with long- term resilience by identifying true trade-offs and encourage the reframing of challenges as opportunities for innovation and new solutions Role of the board Boards position organizations to navigate complexity and should: STAK EH O LD E R COLLABORATION SK ILLS A ND KNOWLEDGE CULTUREFOUNDATIONS GUIDING PRINCIPLES FOR CLIMATE AND NATURE GOVERNANCE STRATEGY OVERSIGHT AND RESPONSIBILITY RISK AND OPPORTUNITYDISCLOSURE AND TRANSPARENCY 19 Board Leadership for Growth and Resilience