Originally published in Reuters
By, Helle Bank Jorgensen
In boardrooms around the world, the question is no longer whether companies must transform, but how. As climate shocks intensify, artificial intelligence reshapes industries, regulations shift and stakeholder expectations evolve, directors face a new reality: traditional oversight models are no longer sufficient. The stakes – economic, environmental and ethical – have never been higher.
Chief sustainability officers (CSOs), often among the first to sense shifting ground, already understand this. But are boards listening?
That question has been top of mind in more than 100 conversations I’ve had with directors, executives, investors and policy leaders around the world. I have captured their insights in my latest book, The Future Boardroom: How to Transform in Turbulent Times.
Boards are now expected, by regulators, investors and stakeholders, to demonstrate fluency in climate and sustainability issues. More than 50 jurisdictions have introduced requirements or expectations for directors to possess climate-related competence. That’s a profound shift in what it means to be a fiduciary steward of a company.
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