What we mean by ‘climate’ and ‘nature’ The terms ‘climate’ and ‘nature’ may mean different things depending on your sector, geography and organization. While these principles can be applied by board members to any systemic disruption, this report uses the context of climate and nature to illustrate the point. To get the most value, we encourage you to form a clear, boardroom-level view of what climate and nature mean to the organization(s) you serve. In this report, we use ‘climate’ to signify both the physical impacts of a changing climate, such as rising temperatures, extreme heat, floods, storms and sea- level rises, and the policy, market and technological shifts associated with the transition to a low-carbon economy. These dynamics influence how companies operate, invest and compete, creating both risks and opportunities across time horizons. We use ‘nature’ to encompass biodiversity, natural resources and ecosystem services (or the benefits that people and economies derive from nature), such as water, soils, forests, fisheries, pollinators and critical minerals, which underpin economic activity and human wellbeing. Nature loss may create direct operational risks, such as resource scarcity or supply chain disruption, as well as systemic risks through its impacts on communities, markets and regulatory responses. Climate and nature are interconnected. Climate change is a major driver of ecosystem loss, while healthy ecosystems play a vital role in storing carbon and moderating climate impacts. For boards, this means considering the two together, as their risks and opportunities are often compounding and require integrated oversight. Climate and nature in practice Evey sector depends on and affects natural systems in different ways. The examples below illustrate how climate- and nature-related risks, opportunities and dependencies appear across industries. They show how shifts in weather patterns, ecosystems and resource availability can influence operations, supply chains and long-term value creation, while also creating new opportunities for innovation and resilience. Climate- and nature-related risks, opportunities and dependencies across industries BOX 1 Financial services → Reliable weather supports crop yields that back agricultural loans, stable coastlines protect insured assets and predictable natural systems sustain the value of property, commodities and investments. → Climate change and nature loss are material financial risks, transmitted through credit, market and operational channels, driving defaults, volatility and systemic exposure. → Embedding climate and nature considerations across strategy, risk management and product design builds resilience and long- term value through green and sustainability- linked finance, climate-resilient insurance models and investment in clean, nature-positive infrastructure.Manufacturing → Clean water supports cooling and processing, reliable energy maintains production and sustainably sourced raw materials enable fabrication. → Floods and heatwaves damage facilities and raise energy costs, while water scarcity and resource depletion threaten essential inputs. These pressures heighten operational risk and erode long-term resilience. → Modern manufacturing is shifting from extraction to regeneration, drawing on clean energy, recycled materials and low-impact water systems. Advances in bio-based materials, additive production and smart factories are redefining how the sector sources, designs and distributes value.Agriculture and food systems → Consistent energy, water and climate conditions maintain food quality and safety. → Soil degradation and erosion reduce fertility, cut yields and increase fertilizer dependence, driving higher costs and nutrient runoff. → Regenerative and precision agriculture help rebuild soil carbon, enhance biodiversity and improve water retention, creating measurable benefits for climate mitigation, ecosystem health and long- term productivity.Technology → Stable land, clean water and predictable weather help secure essential metals like copper, lithium and rare earth minerals. → Water scarcity and extreme weather events pose significant risks to operations and infrastructure, potentially compromising stability and business continuity. → Resource efficiency, restoration and circular design allow tech companies to cut costs, build resilience and tap into a multi-billion dollar potential for new value.Mining and metals → Water enables processing and rehabilitation, while land stability supports safety and waste management. → Floods can damage tailings dams, heatwaves threaten worker safety and energy supply, and water scarcity disrupts metals processing. → Recycling or material recovery reduces dependence on virgin extraction, stabilizes supply chains and enhances long-term operational efficiency. Board Leadership for Growth and Resilience 8

Board Leadership for Growth and Resilience 2026