Company directors across Africa are being urged to take nature-related risks more seriously as legal obligations, sustainability reporting standards and environmental litigation continue to evolve.
A new report highlights that directors can no longer treat environmental issues as separate from business strategy. Instead, boards are being encouraged to integrate nature-related risks into governance frameworks to meet their existing legal duties and strengthen long-term business resilience.
According to the report, companies are operating in an increasingly complex regulatory environment. The growing adoption of global disclosure frameworks such as the Taskforce on Nature-Related Financial Disclosures (TNFD) and the International Financial Reporting Standards (IFRS) S1 and S2 sustainability reporting standards is raising expectations around corporate transparency.
The report also points to new regulations, including the European Union Deforestation Regulation (EUDR), as well as increasing climate and environmental litigation across Africa. Companies such as Shell in Nigeria, TotalEnergies in South Africa and the East African Crude Oil Pipeline (EACOP) have all faced legal challenges linked to environmental impacts.
As a result, directors are facing greater scrutiny over whether they have adequately identified, assessed and managed nature-related risks as part of their governance responsibilities.
Although corporate governance laws differ across African countries, the report finds strong legal convergence in Kenya, Nigeria and South Africa.
In Nigeria, the Companies and Allied Matters Act 2020 requires directors to consider environmental impacts when carrying out their responsibilities.
In Kenya, directors who fail to manage foreseeable and financially material nature-related risks could be found in breach of their duties under the Companies Act 2015.
South Africa presents a similar legal position through the Companies Act 71 of 2008, the National Environmental Management Act, the Bill of Rights and the King IV Report on Corporate Governance.
The report concludes that nature-related governance is no longer simply a future regulatory issue. Instead, it should already form part of every board’s governance and strategic planning processes.
Speaking during the webinar Nature on the Board Agenda: What Directors in Africa Need to Know, CDH Kenya Director Sammy Ndolo said many boards still approach environmental issues mainly as compliance requirements.
He noted that directors often focus on environmental impact assessment licences and regulatory approvals without fully appreciating that promoting the success of a company also requires understanding the effects of business operations on communities, biodiversity and ecosystems.
According to Ndolo, Kenya’s environmental legislation defines the environment broadly, meaning that nature-related risks already fall within directors’ legal responsibilities.
He added that the report moves the discussion beyond traditional environmental, social and governance debates by demonstrating that existing legal frameworks already require directors to address nature-related risks.
Ndolo also warned that courts are increasingly examining whether businesses have exercised sufficient environmental diligence when obtaining approvals.
“The window between environmental liability and directors’ responsibility is narrowing,” he said.
He added that directors could increasingly face personal liability as environmental litigation continues to expand across Africa.
Natalie Shippen, Executive Director at the Commonwealth Climate and Law Initiative (CCLI), said Africa has historically been underrepresented in legal analysis relating to nature-related governance despite its economies depending heavily on natural resources.
She said the report provides directors in Kenya, Nigeria and South Africa with clear guidance on how existing legal duties apply to nature-related risks.
According to Shippen, boards that begin integrating these issues into governance today will be better positioned to manage future risks while taking advantage of emerging business opportunities.
The report was presented during a pan-African webinar held on 22 July 2026, bringing together leaders from business, finance and the legal profession to discuss practical implementation across the continent.
