Building Board Capability for the Climate Transition
13 October 2025
IGCC’s Climate Capability for Boards report sets out what good climate governance looks like — and how investors can assess and engage company boards on transition readiness. It identifies five principles for effective oversight and provides practical tools to guide investor engagement.
Boards are at the centre of the net zero transition. Effective oversight of climate and other systemic risks is now a core strategic and financial responsibility, essential to protecting long-term value and ensuring credible corporate transition plans.
IGCC’s new Climate Capability for Boards report provides practical, principles-based guidance to help investors and companies assess whether boards have the skills, structures, and mindsets needed to navigate the climate transition.
Developed in consultation with company directors, investors and governance specialists, the framework sets out clear expectations for board capability and accountability. It offers a structured tool for:
-
Companies: assessing board composition, training and succession planning to ensure climate competency at the top.
-
Investors: informing engagement with portfolio companies and evaluating board preparedness for the transition.
Practical tools included:
The report features an evaluation matrix, engagement framework and sector-specific signposts for key industries — including oil and gas, utilities, resources, transport, industrials and consumer goods — helping translate principles into action.
Why it matters:
Strong board skills on climate are no longer optional — they are a strategic imperative for managing risk, seizing transition opportunities, and maintaining investor confidence.
Read the full report