Investors, lenders, insurance underwriters and other users of nature-related financial disclosures (collectively referred to as “investors and other stakeholders”) are interested in understanding the role an organisation’s board plays in overseeing nature-related risks and opportunities, as well as management’s role in assessing and managing those risks and opportunities. Such information supports evaluations of whether nature-related risks and opportunities receive appropriate board and management attention.
Disclose the organisation’s governance around
Recommended Disclosure a)
Guidance for All Sectors
In describing the board’s oversight of nature-related risks and opportunities, organisations should consider including a discussion of the following:
- processes and frequency by which the board and/or board committees (e.g. audit, risk, or other committees) are informed about nature-related risks and opportunities;
- whether the board and/or board committees consider nature-related risks and opportunities when reviewing and guiding strategy, major plans of action, risk management policies, annual budgets, and business plans, as well as setting the organisation’s performance objectives, monitoring implementation and performance, and overseeing major capital expenditures, acquisitions, and divestitures; and
- how the board monitors and oversees progress against goals and targets to address nature-related risks and opportunities.
Describe the board’s oversight of nature-related dependencies, impacts, risks and opportunities.
Recommended Disclosure b)
Guidance for All Sectors
In describing management’s role related to the assessment and management of nature-related risks and opportunities, organisations should consider including the following information:
- whether the organisation has assigned nature-related responsibilities to management-level positions or committees; and, if so, whether such management positions or committees report to the board or a committee of the board and whether those responsibilities include assessing and/or managing nature-related risks and opportunities;
- a description of the associated organisational structure(s);
- processes by which management is informed about nature-related risks and opportunities; and
- how management (through specific positions and/or management committees) monitors nature-related risks and opportunities.
Describe management’s role in assessing and managing nature-related dependencies, impacts, risks and opportunities.