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Part I: Navigating Legal Duties & Sustainability in an Era of Divergence and Disruption

Year Published

2025

Contributing Organizations

Climate Governance Initiative (CGI)

Type of Resource

Guidance

Languages

English

Relevant Topics

Core Topic
Climate Policies & Frameworks
Topic 2
Climate Strategy & Capabilities

Target Audience

Asset Managers
Asset Owners
Banks
Financial Services Providers
Insurers

Relevant Geography

Global

Resource Description

This resource is the first in a three-part series from Chapter Zero France’s 2025 NED Program. It explores how directors’ legal duties intersect with climate and nature risks, in the context of growing policy disruption and varied ESG discourse. The guide offers a concise analysis of evolving legal expectations for board-level decision-making on sustainability.

Why This Matters

This guide supports NEDs in aligning their governance approach with emerging legal expectations around climate risk, in the context of varied political discourse on ESG issues.

Key Insights

  • Clarifies that directors' duties include managing foreseeable financial risks, including those related to climate and nature
  • Explains that failure to consider material climate risks may breach directors’ legal obligations
  • Notes that legal interpretations vary across jurisdictions but increasingly support climate-conscious governance

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