Firms urged to integrate nature risks into governance
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A landmark legal opinion released by the Commonwealth Climate and Law Initiative (CCLI), in partnership with ClientEarth and the Institute of Corporate Directors (ICD), is calling on Philippine corporate directors to integrate nature- and climate-related risks into board-level decision-making.
The report, titled “Nature-related risks & opportunities, and the duties of company directors under Philippine law,” outlines how evolving legal obligations are reshaping directors’ responsibilities, particularly in sustainability disclosure and risk governance.
According to the document, directors are expected to incorporate nature-related risks into risk assessment and strategic planning, aligning with both local regulatory expectations and global best practices.
The legal opinion emphasized that these risks are not merely environmental concerns but may translate into financial, operational, legal, and reputational risks for companies, particularly when business activities affect ecosystems and communities.
It added that integrating such considerations into governance frameworks could help companies strengthen long-term value, improve resilience, and attract sustainable investments.
The release of the report will also lead to a high-level gathering of board directors, regulators, and sustainability professionals in Manila on 14 April, with participants expected from the Securities and Exchange Commission and the Philippine Stock Exchange.
The initiative positions the Philippines to further strengthen corporate transparency and align with global climate goals, while underscoring the growing role of law in shaping corporate governance toward sustainability.
