Board Reflection and Management Oversight Questions

Guiding questions for board reflection Question 1: Which stakeholders have the greatest influence on our business in relation to climate and nature risks, and how do we prioritize engaging with them? Question 2: How do our stakeholder engagement processes give us reliable insights into climate and nature opportunities that affect our business decisions and market growth? Question 3: How do we incorporate stakeholder views on climate and nature into our strategy discussions and public reporting? Question 4: How is our external policy engagement aligned with our climate and nature commitments? Question 5: How do our disclosures reflect the perspectives of stakeholders beyond investors and demonstrate their interests are considered in board oversight? 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 Does management’s response include the following? Question 1: What mechanisms are in place to collaborate with stakeholders, including industry peers and our value- chain, to find opportunities for addressing shared climate and nature challenges? –Participation in industry associations or alliances or sector transition initiatives –Collaborative projects with suppliers or customers –Partnership agreements Question 2: How do we decide which stakeholder insights are captured, escalated to the board and addressed? –Stakeholder engagement plans –Ongoing engagement through surveys, forums or collaborative projects –Periodic analysis to identify trends –Escalation pathways for concerns Guiding questions for boards to ask of management Does management’s response include the following? Question 1: How does management promote a culture that supports accountability, innovation and openness to the impacts of climate and nature on our business? –Leadership messaging linking purpose and sustainability –Incentives and recognition for innovation –Forums for feedback and idea sharing Question 2: How do we assess whether our culture supports effective climate and nature governance? –Engagement surveys that include climate and nature themes –Climate and nature indicators in performance reviews (particularly long-term indicators) –Feedback loops from employees and stakeholders FOUNDATION 2 Stakeholder collaboration FOUNDATION 3 Culture