The Growing Spotlight on Biodiversity: Why Boards Should Pay Attention

In brief: Biodiversity loss is occurring at rates never before seen in human history. While climate change has recently been at the forefront of boardroom environmental, social, and governance (ESG) discussions, it is critical that boards understand the connection between the climate crisis and biodiversity loss.

This checklist helps address this growing challenge by outlining why boards should understand the impacts their organizations have on biodiversity loss and how they can align biodiversity targets with their broader climate goals.

The focus on the board’s compensation committee has never been sharper. The components of compensation plans and the link between compensation and company performance are under intense scrutiny from shareholders, employees, policymakers, the media, and other stakeholders. The Report of the NACD Blue Ribbon Commission on the Compensation Committee revisits NACD’s 2003 Report of the NACD Blue Ribbon Commission on Executive Compensation to highlight the new environment in which compensation committees—and, more broadly, boards—are now operating. It recommends that the compensation committee and board work together to establish an executive compensation philosophy that supports the company in creating long-term, sustainable value.

The report includes ten specific recommendations for compensation committees to consider when evaluating their compensation philosophies. It also provides practical tools, such as sample compensation committee charters, a compensation committee assessment, and guidance on executive employment contracts.