Leading climate strategy from the board

WITH the Glasgow Climate Pact, nearly 200 countries agreed to strengthen their targets for cutting greenhouse gas emissions. As a result, companies around the world must act - and their boards must show leadership. How have directors coped with climate change to date? How is the issue already integrated into corporate governance and management processes? And what practical steps can boards take to make real progress on addressing climate change?

These were the questions that Insead and Heidrick & Struggles set out to answer through a recent global survey of 300 board directors. We focused specifically on climate change, rather than the broader sustainability or ESG (environmental, social and governance) angle. Our rationale was not only that climate change would be top of mind in the run-up to the 2021 United Nations Climate Change Conference (COP26), but that the more specific the findings, the more practical the advice we could offer boards.

Our results revealed 1 stark fact: With respect to climate change, there is a vast gulf between what many directors say and what they do. Nevertheless, we also found reasons to be optimistic, concerned and alarmed.