Responding to nature-related risk in the boardroom

This briefing from Parry Field Lawyers examines the evolution of corporate law in Aotearoa New Zealand and its intersection with directors’ duties in relation to nature-related risks. It outlines how growing environmental, regulatory and market expectations are reshaping governance practice and increasing the importance of board oversight of biodiversity loss, ecosystem degradation and other nature-related impacts.

It explains why nature-related risks matter to New Zealand organisations, particularly in an economy heavily reliant on natural capital and trade. It explores physical risks, transition risks and the increasing foreseeability of environmental harm, and considers how these factors interact with directors’ duties under sections 131 and 137 of the Companies Act 1993.

The briefing highlights:

• • Physical and transition risks linked to nature and natural capital
  • The duty to act in good faith and in the best interests of the company
  • The duty of care, diligence and skill in identifying and managing foreseeable environmental risks
  • Practical governance steps boards can take to embed nature-related risk into oversight and risk management frameworks

This resource is intended to support directors in understanding their legal obligations and in strengthening board governance in response to evolving expectations. It reinforces that proactive engagement with nature-related risk is both a legal responsibility and a commercial imperative for organisations operating in Aotearoa.