By Helle Bank Jorgensen
We’re halfway through 2025, and if there’s one word I keep hearing from boardrooms around the world, it’s this: fragmentation.
Fragmentation of regulations. Fragmentation of investor expectations. Fragmentation of trust.
A few years ago, we celebrated the rise of sustainability regulations, believing they would bring clarity, alignment, and urgency. Today, many of those expectations are being rewritten.
In the U.S., we’ve seen a full-blown politicization of ESG. Some institutional investors have gone silent, not because they’ve abandoned sustainability but because speaking up has become a legal or political risk. In Canada, climate-related disclosure remains voluntary for now, as regulators assess the temperature politically and otherwise. Even the EU, long seen as the gold standard for sustainability ambition, is now slowing down implementation timelines, reopening definitions, and reconsidering thresholds.
Some boards are quietly celebrating: “Finally, less reporting burden. Fewer compliance costs.” But here’s my question: At what cost?
Because, while some regulations are pausing, the risks aren’t.
Mother Nature is not waiting. Neither are your stakeholders.
In fact, what I heard at our recent Competent Boards Global Forum is that many institutional investors, especially asset owners, are recalibrating. They still want transparency, but they’re becoming more strategic about how they engage. Voting patterns are shifting. Disclosure demands are evolving. And increasingly, the quality of oversight matters – not just what’s disclosed but how it’s governed.
We’ve moved into the “Figure-It-Out-Yourself” era
If you’re on a board today, I won’t sugarcoat it: You are now operating without a script.
Less regulation doesn’t mean less responsibility. It means more judgment. More conversations. More uncomfortable decisions about what’s truly material.
You can no longer default to “we comply with the rules.” The rules are changing, and so are the stakeholders who hold you accountable.
What I hear from investors across the globe, whether in Europe, India, or the Gulf, is not “Give me your sustainability report.” It’s “Show me you understand the world you operate in and that your board has the competence to lead through it.”
The insurance industry is adapting to change
In 2025, insurance is no longer a passive line item in your risk register. It has become a loud, strategic signal that many boards still underestimate. Across Europe and North America, we’ve seen a growing number of insurers quietly exit high-emitting sectors and high-risk geographies. What began as selective exclusions is rapidly expanding into systemic recalibration. In some cases, entire regions, coastal cities, flood-prone supply zones, and drought-vulnerable agricultural hubs are now deemed uninsurable under standard terms. This isn’t political. It’s mathematical.
If you haven’t already, you should start asking:
● Has your team assessed whether your critical operations sit in zones that are becoming “uninsurable”?
● Are your climate and nature strategies visible enough to secure favourable underwriting terms?
● Do your disclosures make it easier or harder for insurers to understand your resilience?
I’ve spoken to executives whose premiums have doubled not because of emissions, but because their supply chain footprint overlaps with areas of extreme water stress and degraded biodiversity. Others have been denied coverage unless they commit to measurable improvements in their land-use policies or supplier traceability.
And it’s not just property insurance. Directors & Officers (D&O) coverage is evolving, too. Underwriters are increasingly factoring in governance maturity, greenwashing exposure, and litigation risk. One senior underwriter recently told me, “We don’t just want to know what the company does, we want to know if the board understands the world it operates in.”
That’s the message I want every board to take seriously: Insurability is the new credibility.
When underwriters hesitate, it is not just about pricing risk. It is a red flag about governance confidence. In a world where climate, nature, geopolitical, and cyber risks are all compounding, the insurance market has become a mirror. It reflects the clarity, or lack of clarity, that boards bring to the table. Many companies are only just beginning to realize they are standing in front of it.
The real task now is alignment
Not across 200 disclosure indicators. But across your purpose, your strategy, your people, your capital allocation, and your governance.
When your investors look at you, do they see coherence? Or, do they see a board waiting for regulation to tell them what to care about?
The answer matters. Because, as regulatory guidance weakens, your board’s voice becomes the signal.
The way forward is not louder positioning. It’s quiet competence, bold clarity, and deep curiosity about what your stakeholders need, and how your company creates value now and in the future.
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