Asking Better Questions on Nature: A Guide for Board Directors

The “Asking Better Questions on Nature” series is designed to help senior executives across business and finance surface critical insights about nature-related dependencies, impacts, risks and opportunities to inform their decision making. The first guide released is for board directors to help surface the decision-useful information they need to ensure that nature-related issues are being appropriately incorporated into the company’s governance, strategy, risk management and capital allocation decision making. It features 12 key questions that board directors may wish to ask company executives and consider in board meetings, and the sort of analysis they should expect to see from their organisations to support those discussions.

Nature as a Strategic Business Risk and Opportunity

The guide outlines how nature-related issues—such as biodiversity loss, pollution, and freshwater scarcity—pose significant financial and operational risks. It also highlights the growing legal, regulatory, and investor expectations for companies to manage these risks. Directors are reminded that managing nature-related dependencies and impacts is part of their fiduciary duty to ensure long-term business viability. The guide encourages directors to view nature not only as a source of risk but also as a driver of innovation and opportunity. It promotes the concept aligning business strategies with global goals to halt and reverse nature loss by 2030.

A Framework for Board Engagement

The document presents 12 key questions across five thematic areas to help directors probe management’s approach to nature:

1. Understanding Nature’s Relevance: How does the business depend on and impact nature? What are the associated risks and opportunities?
2. Integrating Nature into Decision-Making: How are nature-related issues assessed, measured, and embedded into strategy, risk management, and capital allocation?
3. External Context: Are companies keeping pace with evolving regulations, standards, and investor expectations?
4. Organisational Competence: Do boards and management have the skills and systems to manage nature-related issues effectively?
5. Board Reflection: Are directors fulfilling their legal duties regarding nature, and how is this documented?

Building Capacity and Accountability

To ensure long-term resilience, the guide stresses the importance of institutionalising nature-related knowledge and processes within organisations. It also calls for regular board-level discussions, training, and the use of credible data and metrics.

Access the full report here.