Investor Climate Dialogue Checklist

So your investors want to talk climate: what do you need to know?

In recent years, investors have increasingly engaged boards on issues pertaining to climate change, as they have been gradually coming to view climate risk as a systemic risk rather than a material one. With this consideration in mind, NACD has developed a checklist of what directors should know before talking to investors about climate change.

How Boards Should Prepare for Climate Talks with Investors

Board members should be able to discuss climate change with investors and be able to answer questions regarding the company’s climate change approach. Below are action items that address how boards can prepare for engaging in these conversations:

• Gain an understanding of each investor’s priorities, as each one may be interested in different aspects of your company’s climate strategy.
•  Identify where climate oversight sits within the board, ensuring that a structure is in place to help guide the board through decisions.
• Engage with outside advisors to gain a holistic, industry-wide perspective on what investors may be interested in learning.
• Ensure that your company’s climate-transition pathway is aligned with the overall sector’s scenario transition plan.

Prepare to answer questions related to how the board will hold management accountable for following through with the company’s climate strategy, and what climate-related metrics the board is tracking to measure the success of management’s strategy.