Draft recommended disclosures: Governance
Governance
Disclose the organisation’s governance around nature-related dependencies, impacts, risks and opportunities.
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 issues, as well as management’s role in assessing and managing those issues. Such information supports evaluations of whether nature-related issues receive appropriate board and management attention.
The governance disclosures cover the organisation’s governance of nature-related dependencies, impacts, risks and opportunities.
A. Describe the board’s oversight of nature-related dependencies, impacts, risks and opportunities.
Guidance for all sectors
In describing the board’s oversight of nature-related dependencies, impacts, risks and opportunities, an organisation should include a discussion of:
- The processes and frequency by which the board and/or board committees (e.g. audit, risk or other committees) are informed about nature-related dependencies, impacts, risks and opportunities;
- Whether and how the board and/or board committees consider nature-related dependencies, impacts, risks and opportunities when:
- Reviewing and guiding strategy, major plans of action, risk management policies, annual budgets and business plans;
- 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 dependencies, impacts, risks and opportunities.
An organisation should consider reporting the following indicators to support this disclosure:
- Number (absolute and proportion of total) of members of board with competence on nature-related issues; and
- Frequency that nature issues are discussed during board meetings.
B. Describe management’s role in assessing and managing nature-related dependencies, impacts, risks and opportunities.
Guidance for all sectors
In describing management’s role in the assessment and management of nature-related dependencies, impacts, risks and opportunities, an organisation should include the following information:
- Whether and how the organisation has assigned nature-related responsibilities to management-level positions or committees, whether such management positions or committees report to the board or board committee, and whether those responsibilities include assessing and/or managing nature-related dependencies, impacts, risks and opportunities;
- A description of the associated organisational structure(s);
- Processes by which management is informed about and monitors nature-related dependencies, impacts, risks and opportunities; and
- How management (through specific positions and/or management committees) monitors nature-related dependencies, impacts, risks and opportunities.
An organisation should consider reporting the following indicators to support this disclosure:
- Highest level of responsibility and accountability for nature policies, commitments and targets; and
- Frequency of communication of performance and progress in priority locations to management.