10 takeaways from Climate Governance Forum 2025

With around 1,400 participants, the fourth AICD Climate Governance Forum in Melbourne brought directors and governance leaders together to examine the practical challenges and opportunities of climate governance.

In his opening remarks, AICD CEO Mark Rigotti noted, 'Boards that engage fully will be better positioned to lead through this change.' The urgency is well-founded. Since 2015, extreme weather events have doubled, Australia’s insured climate costs have risen 67 per cent to $22.5 billion, and the nation is warming 40–50 per cent faster than the global average. Against this backdrop, 10 key takeaways emerged out of the forum’s panel and roundtable discussions, and keynote presentations, that can help boards better navigate the climate transition.

Climate impact is going to be universal

1. Climate impact is now inevitable – no organisation will be able to avoid it entirely 
Climate scenarios show every organisation will experience climate impacts, whether through physical risks or societal responses. At the Forum, boards were encouraged to adopt a climate-impacts mindset to build resilience and identify opportunities in Australia’s energy transition in particular. The emphasis shifted from whether climate will affect an organisation, to how it will respond. Climate adaptation measures will be key.

2. Physical climate risks play out locally
Geoff Summerhayes GAICD, Chair of Zurich Australia and the AICD Climate Governance Initiative Advisory Council, emphasised the need for local action: 'Think about where your customers and employees are, and build collaboration and cooperation.' With Australia warming faster than the global average, regional resilience planning is both essential to effective risk management and a practical place for boards to start.

Integration beats isolation

3. Climate belongs in core strategy, not just sustainability 
Climate considerations are increasingly being embedded in capital allocation, M&A, operational plans, and risk management – not siloed in sustainability teams. Vanessa Sullivan GAICD, non-executive director at AGL and CSIRO, highlighted that CFOs had an increasingly central role in applying the same rigour and clarity to climate data as to financial reporting, ensuring it reflects the organisation as a whole.

4. Focus on materiality
Understanding an organisation’s climate impacts and exposure, especially across supply chains remains a challenge. Boards should focus on what is most material to their organisation while avoiding 'greenhushing'  limiting disclosures on climate-related risks, targets, or transition plans. Strategic visibility of scope 3 emissions, for example, helps build stakeholder trust, even when the transition path is still developing.

5. Shift climate from a compliance obligation to a source of competitive advantage
Effective climate governance has shifted from being framed as a corporate social responsibility issue to now being recognised by many as a core strategy and risk theme for the board. In this context, directors were encouraged to see disclosure not only as regulatory compliance, but as a chance to demonstrate leadership and strengthen competitive positioning in a shifting domestic and global economy.

Execution requires rigour

6. Treat climate disclosures with a 'prospectus mindset'
Tom Pockett MAICD, Chair of IAG and Stockland, in his keynote address, encouraged directors to approach climate statements with the same rigour as financial accounts – a prospectus style verification approach was appropriate. The caution: lawyers should review climate reports, not write them.

ASIC Commissioner Kate O’Rourke reinforced that the regulator expects 'high quality, consistent and comparable' climate and sustainability reporting under the mandatory regime. She also encouraged entities to engage with ASIC on their guidance and that the regulator was focused on supporting implementation of the new regime.

7. Transition plans must be 'finance grade'
Energy expert, Tony Wood MAICD from the Grattan Institute, urged organisations to 'think ahead' and 'act early' to seize opportunities and avoid the cost of inaction. Investors expect credible plans with timelines, budgets, and capital allocation – not just aspirations.

Transition planning should be approached like any major capital investment, as outlined in the AICD–ACSI Governing for Net Zero guide, released ahead of the forum.

8. Ambitious targets can drive organisational focus
Pollination’s Zoe Whitton noted that stretching targets can align executives, attract innovative partners, and galvanise employees. Michael Ullmer AO FAICD highlighted Lendlease’s ‘net zero carbon’ scope 1 and 2 emissions by 2025 target, which has drawn suppliers developing green construction materials – an announcement that led directly to new solutions.

However, targets also needed to be pragmatic and grounded in reality – organisations risked accusations of greenwashing if ambitions were not founded on credible plans and targeted investment. Transparency around dependencies and assumptions (such as emerging technology) is central to effective governance.

Reality has constraints

9. Capacity constraints are real – and climate must compete
Climate governance is one of many priorities competing for board attention alongside global conflicts, cost pressures and cyber risks. Some organisations are forming climate advisory boards to bring in specialist expertise and maintain focus without overloading core governance capacity. The most mature organisations are seeking to incorporate nature-related considerations into their climate strategy, rather than a standalone, potentially less critical issue.

10. Domestic policy stability helps planning, but global volatility keeps the transition nonlinear
A message repeated across several of the sessions was that improved domestic policy certainty supported corporates’ long-term planning, and the corresponding investment needed for the transition. The federal government’s announcement of Australia’s 2035 emissions target expected before year-end, and the proposed hosting of COP31 in Adelaide next year are likely to be the next major milestones. However, global instability and shifting international policies still complicate long-term planning, requiring boards to balance local opportunities with international uncertainties.

Closing the Forum, Tony Wood offered a measured perspective: 'If you are not pessimistic about the science, you haven’t been listening. And if you’re not optimistic about the opportunities, you also haven’t been listening.'