Board Reflection and Management Oversight Questions

PRINCIPLE 4 Disclosure and transparency Guiding questions for board reflection Question 1: How well do we understand our responsibilities, potential liabilities and stakeholder expectations regarding the information disclosed on climate and nature? Question 2: How do we gain confidence that our sustainability disclosures are accurate, complete and consistent across all public communications, including filings, investor briefings, websites and financial statements? Question 3: How effectively do our disclosure processes reflect the organization’s actual performance, position and progress on climate- and nature-related topics, including areas where progress is limited? Question 4: How confident is the board in its ability to explain and stand behind information disclosed on climate and nature to regulators, investors or other stakeholders? Question 5: How do we remain aligned with evolving reporting requirements while staying mindful of differing or competing stakeholder expectations? Guiding questions for boards to ask of management Does management’s response include the following? Question 1: What systems and internal controls are in place to verify the quality, consistency and reliability of climate- and nature-related data used in external disclosures, and how do these differ from our financial controls? –Documented data governance and control processes –Defined roles for data owners and reviewers –Use of standardized methodologies and metrics –Internal audit or quality checks before disclosure Question 2: How does management determine which climate- and nature-related issues are material to disclose, and how is the board involved in that process? –Clear criteria for materiality assessment (financial, stakeholder, regulatory) –Regular reviews of materiality in light of emerging risks and opportunities –Processes to enable board input into materiality determinations and alignment with organizational strategy –Alignment with recognized frameworks –Reporting that reflects forward-looking value creation Question 3: How are climate- and nature-related disclosures assured or verified, and what information does the board use to be confident in areas of uncertainty or key management judgements? –Scope of internal and external assurance clearly defined –Use of credible third-party assurance providers, including specialists in climate- and nature-related risks and opportunities, where relevant –Summary of findings shared with the board –Management sign-off supported by internal validation processes –Explanation of reasonable grounds for judgements made and why they are considered appropriate Question 4: How is consistency maintained between different forms of communication, including regulatory filings, investor briefings, annual reports and internal messaging? –Central coordination of messaging across reporting channels –Alignment checks between public disclosures and internal narratives –Sign-off processes across functions –Evidence of messaging discipline on material issues Question 5: Who in management is responsible for climate and nature disclosures, and what accountability mechanisms are in place to ensure compliance with regulatory and stakeholder expectations? –Named executive roles accountable for disclosure quality –Defined roles across functions –Compliance embedded in performance goals or incentive structures –Escalation pathways for risks, errors or missed obligations