Board Leadership for Growth and Resilience 2026

As we have the expertise to oversee financial reporting, we need to acquire the skills and knowledge to critically assess the risks and opportunities not only from climate change but also our reliance on natural resources. When setting climate targets, you need to have also considered the impact of your business on the natural environment, as they are inextricably linked. Penny Bingham-Hall, board member, Fortescue Ltd Skills and knowledge The board maintains the skills, knowledge and mindset to challenge strategy, oversee risk and drive sustained value. It applies understanding of how shifts in climate and nature affect the organization, recognizing they present unprecedented opportunities and risks.Foundation 1 Build capability by developing knowledge of climate and nature tailored to the organization’s strategy, business model, sector and geography Exercise diligence by being sufficiently informed to challenge assumptions, interrogate risks and opportunities, and apply sound judgement in contexts where impacts are systemic, non-linear and longterm Oversee management capability by assessing whether executive teams possess the skills to integrate climate and nature considerations into strategic and operational decision-making, including recruitment and succession planning Sustain board capability through regular reviews of collective skills and expertise, using tools such as skills matrices, engaging external experts when appropriate and embedding continuous learning to maintain effective oversight Role of the board To oversee risks effectively and instil a mindset of strategic opportunity, board members require robust skills and knowledge tailored to their organization’s reliance on nature and the business impacts of climate change. To strengthen this foundation, boards can: STAK EH O LD E R COLLABORATION SK ILLS A ND KNOWLEDGE CULTUREFOUNDATIONS STRATEGY GUIDING PRINCIPLES FOR CLIMATE AND NATURE GOVERNANCE STRATEGY OVERSIGHT AND RESPONSIBILITY RISK AND OPPORTUNITYDISCLOSURE AND TRANSPARENCY 9 Board Leadership for Growth and Resilience