Applying Climate
Governance Principles

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Future of the American Board

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The Climate Governance Toolkit

The board's responsibility to preserve and deliver shareholder value has expanded to include the strategic implications and physical and transition risks presented by climate change.

The challenge for directors is: how to effectively govern this evolving area and what are effective and emerging oversight practices and processes?

The climate governance toolkit provides practical guidance for USA boards drawing on director insights, research, and surveys. Eight key board responsibilities are addressed including board structure, executive compensation, and risk and opportunity assessment.

Explore the Climate Governance Toolkit

About the Climate Governance Principles

The toolkit is based on the World Economic Forum’s (WEF) Climate Governance Principles. These principles were developed to help directors around the world:

  • gain climate awareness and skills,

  • embed climate considerations into board decision-making, and

  • understand and act upon the risks and opportunities facing their organizations.

The NACD has adapted these principles to craft the Climate Governance Toolkit focused on the application in American boardrooms. Each tool was developed with insights from NACD content partners, Deloitte, Persefoni, and Willis Towers Watson, boardroom experiences of the members of NACD’s Climate Advisory Council, and data and research from the NACD.

This work is part of NACD’s Climate Initiative as the US host chapter of the global Climate Governance Initiative and was supported by the insights of the NACD Climate Advisory Council.

About the Climate Advisory Council

In 2023, NACD, alongside its strategic content partners, established the Climate Advisory Council. The Council brings together directors to share approaches, discuss challenges, develop and model new guidance and best practices, and engage in dialogue with other stakeholders. The ultimate goal is to improve governance across the director community and prepare boards for the Future of the American Boardroom.

Get Involved

If you are a stakeholder interested in exploring a partnership around this initiative, or an NACD member and would like to learn more, please contact Rachel Dubbs, Senior Content Analyst, ESG Content.

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