Board Reflection and Management Oversight Questions

Guiding questions for board reflection Question 1: How effectively do we integrate climate and nature considerations into our strategic oversight and decision-making processes? Question 2: To what extent are climate and nature capabilities and responsibilities clearly defined, understood through the board skills matrix and allocated across our board committees and individual board members? Question 3: What steps are taken to ensure the consistency and credibility of information used to inform board decisions on climate and nature? Question 4: How do we ensure our governance processes adapt to capitalize on emerging climate and nature market opportunities? Question 5: How are values, expectations and accountabilities for climate and nature communicated and reinforced across the organization?PRINCIPLE 1 Oversight and responsibility Guiding questions for boards to ask of management Does management’s response include the following? Question 1: How are responsibilities for identifying and overseeing climate- and nature-related risks and opportunities assigned across senior management, and how are dependencies on natural resources incorporated into those responsibilities? –Named accountabilities at executive level –Roles embedded in job descriptions and KPIs –Executive pay/short- and long-term incentives linked to performance –Cross-functional coordination mechanisms –Regular reporting to CEO and/or board Question 2: What systems are in place to monitor, measure and report progress on climate- and nature-related targets? –Clear targets and KPIs with baselines –Tracking systems or dashboards –Library of agreed wording for management to use externally in relation to sustainability, climate and nature, including targets –Defined response plans for underperformance –Transparent reporting and escalation Question 3: How are roles and responsibilities structured to support the integration of climate and nature into strategic planning, risk oversight and operational execution? –Clarity on responsibility and accountability across senior leaders –Defined processes for embedding climate and nature into key decisions –Integration into existing board committees –Cross-functional alignment between strategy, risk and operations –Regular inputs into planning cycles and investment decisions Question 4: What steps are taken to verify the integrity, consistency and credibility of information used to inform board decisions on climate and nature, and what mechanisms are in place to enable stakeholders to raise concerns? –Use of recognized standards and frameworks –Internal controls and quality checks –Independent assurance where needed –Clear documentation of assumptions and gaps Question 5: How is the organization meeting its legal, regulatory and stakeholder obligations related to climate and nature governance? –Systems to monitor regulatory and policy changes –Regular board updates on compliance and enforcement risks –Internal assurance or audit of key obligations –Proactive engagement with regulators, investors and other key stakeholders