Physical risk and board accountability in the UK: The cost of inaction
Investors and banks have sharpened their focus on physical climate risk. They increasingly expect good data and disclosures from companies as a precursor to investment or lending decisions. Companies that proactively identify these risks, clearly disclose them, and are able to put in place effective adaptation plans to mitigate these risks, will have a competitive advantage. ... As this topic continues to rise up the investor agenda, so too should NEDs make sure it’s on the board agenda.
Alexandra Innes, Chapter Zero Fellow, Portfolio Non-Executive Director, Non-executive Committee Member, Bank of England, Global Advisory Board, Cambridge Institute for Sustainability Leadership
Download Briefing note for Board Directors
Related Content
Depend on it: why external enablers are now core board business
In September 2025, the World Business Council for Sustainable Development (WBCSD) and Oxford Sustainable Finance Group published a practical guide on transition plan dependencies for companies. It sets out seven practical steps to identify and address the factors outside a company’s control that might impact the delivery of their climate transition plans. This supplement, created in collaboration by WBCSD and Chapter Zero, complements this guidance with considerations and questions for non-executive directors (NEDs) as they work with fellow board members to set strategic ambition for transition plans and provide oversight for their operational delivery. To download the full resource, please fill in the form below.
Skilling Up: Training on physical risks of climate change in the financial sector
To support financial firms in developing their climate-scenario analysis capabilities, the Climate Financial Risk Forum (CFRF) has issued a guide to help institutions identify their specific training needs related to physical climate risks and to implement effective plans for addressing them.
