Exchange: Staying Current on Climate Risk and Response

Climate risk is affecting organizations of all sizes with growing direct impacts on financial performance. But climate impacts have an uncertain pace and trajectory, and corporate boards and their management teams can learn from others how to govern and manage these risks.

The concept of effective stakeholder collaboration is a foundation of Board Leadership for Growth and Resilience: Guiding Principles for Climate and Nature Governance developed by Chapter Zero Alliance, the World Economic Forum, and Deloitte.

This article offers ideas and resources to support exchange with key players in a company’s value chain as a means of staying informed about and taking steps to manage relevant risks.

A Need for Networking

Information exchange is particularly valuable in developing responses to emerging climate risks, as many issues may need a coordinated industry or enterprise value-chain engagement or response.

Meaningful information exchange involves both learning from and communicating with others—beyond mere policy research and public relations. It requires the creation and cultivation of an ongoing, dynamic, value-creating network through which directors and members of senior management can engage with a variety of key business stakeholders about the risks and opportunities of climate change.

Envisioning Exchange

Working with senior management, the board can identify how leaders across functions engage with key stakeholders, including peers, on climate topics. Engagement and exchange throughout the organization enables increased climate-risk knowledge and surfaces new opportunities for products and services.

Climate Risk Rating Agencies

It is notable that Fitch, Moody’s, and S&P Global all include climate risk in their ratings of company securities. When communicating with these rating agencies, companies should bear in mind their sensitivity to specific aspects of climate risk.

Industry Peers

Working with management, the board can identify peer companies that are engaged in climate governance. Such networks already exist through nonprofit sustainability groups including CERES, BSR, WBCSD, and Sustainable Brands. NACD represents a range of industries across its 24,000 members and our annual Directors Summit generally includes sessions on climate risk governance.

Regulators

As extreme climate events continue to occur, regulatory frameworks are evolving at the local, state, and federal government levels. In addition, many multinational and international companies are impacted by various climate regulations and disclosure requirements, such as the EU’s CSRD.

In this evolving regulatory landscape, engagement with regulators is valuable. “Networking” with standard setters is not limited to traditional lobbying channels. There are multiple national and international forums that bring together public and private leaders to explore climate issues. For example, in April 2026, C2ES continued its Regional Clean Economies Initiative, which has brought together hundreds of stakeholders to discuss the “emerging battery belt” in the southeastern United States, and the need to address rising energy demands, supply chain disruptions, and opportunities for innovation and regional growth.

Shareholders

Many investors are asking how boards are governing climate-change responses and are examining committee charters to assess that governance. They are also examining climate-risk disclosures, especially as many have set their own climate goals and are looking for climate-resilient portfolios. Most importantly, they welcome dialogue, so directors should work with their investor relations teams to understand how and when to incorporate climate-related factors into investor conversations.

Supply Chain Partners

Every organization has a supply chain. One of the important aspects of climate competency is being aware of the climate resilience of the ecosystem. Directors can attend (or ask key members of management to attend) supply chain summits hosted by government agencies, industry groups, or private-sector vendors, such as the Generis summits.

Universities

Most major universities have programs designed to support dialogue on climate risk. For example, Duke University hosts the Nicholas Institute for Energy, Environment, and Sustainability, which convenes events such as town halls to exchange views on issues.

Throughout engagement with different climate-impacted communities, directors and senior managers should ensure consistent messaging, while addressing the specific interests of each group. As reporting regimes continue to evolve, it is important to ensure that boards and management have a common and clear message and information on the organization’s climate approaches.

Questions for Boards to Consider

Networks are not built overnight. Each director will bring relationships that can be helpful to the board in building and maintaining a climate “exchange.” When considering the strength of their external climate-focused relationships, directors can raise these valuable questions:

• Who within the organization’s network should the board engage with on climate issues?
• How does the board ensure consistency in what, how, where, and why this information is being shared?
• How is the board regularly informed about this information, and what is being shared?
• How does the board capitalize on stakeholder engagement? What information or guidance can leverage current climate initiatives?