Board Members, Buckle Up!

By Helle Bank Jørgensen

The next five months are shaping up as a crucial time for corporate leaders around the globe to prove their sustainability credentials. A series of high-profile events — New York Climate Week in September, the Biodiversity COP in October, the Climate Change COP in November and the World Economic Forum next January 2025 — are sure to test their resolve, agility and foresight.

These are not just routine checkpoints, but moments of reckoning. The world is demanding real, measurable action, and the choices made will set the trajectory for businesses well beyond 2025. It is not exaggeration to say that board members will be under considerable pressure to step up and make transformative decisions.

No time for excuses

Let’s be clear: the time for vague pledges and glossy sustainability reports filled with nice-sounding goals has passed. This year’s NY Climate Week will center on “It’s Time” and the message couldn’t be clearer that the world now demands action.

Setting targets and making promises are no longer sufficient. Corporate boards mired in endless discussions about the feasibility of net-zero transitions or giving nature a seat at the table are already behind the curve.

The expectations of stakeholders—be they investors, customers or regulators—are escalating rapidly and globally. Markets are reacting harshly to businesses that are slow to act or that offer half-hearted measures.

Transparency is no longer open for negotiation, and accountability has become the new watchword.

Boards must ensure that their companies are not just making progress but are leading the charge toward reversing the alarming rate of climate change and biodiversity loss. Anything less is simply unacceptable.  The recent wildfires in California and Canada’s Jasper National Park, alongside the devastating floods in India and Bangladesh, underscore the urgency of this mission. These events are not isolated incidents but rather stark reminders of the escalating environmental crises we face. In addition, the] World Economic Forum (WEF) has increasingly emphasized biodiversity as one of the top global risks in its annual Global Risks Report. In the 2024 edition of the report, biodiversity loss was highlighted as one of the top five risks in terms of impact, reflecting the growing recognition of its critical importance to the stability and sustainability of global ecosystems and economies.

I see that the upcoming Biodiversity COP in Cali, Colombia, will focus on implementing a new, 10-year global biodiversity framework that will usher in a more nature-positive future. Also, the upcoming Climate Change COP in Baku, Azerbaijan, will focus on enhancing collaboration and ambition to enable action.

I hope these conferences will force boards to accept that biodiversity and climate issues are inextricably linked. In the process, they will underline a fundamental shift in how we approach nature and climate issues. Historically, biodiversity has been a footnote in the broader climate conversation. But this is changing rapidly. Companies can no longer afford to treat biodiversity as a peripheral concern. The risks associated with biodiversity loss—from disrupted supply chains to increased regulatory scrutiny—are substantial and growing. We probably have seen how water shortages in Taiwan, a critical global supplier of semiconductors, are significantly disrupting supply chains due to the industry’s heavy reliance on water for microchip production. For boards, this means moving beyond narrow climate strategies and integrating biodiversity into the core of their decision-making processes.

Raising the stakes

The theme of the 2025 World Economic Forum — “stimulating growth, responding to geopolitical shocks, and stewarding a just transition” — highlights the key challenges and opportunities for the years ahead. In addition to maintaining resilience, businesses must actively seek ways of driving change in a world where economic and political landscapes are shifting rapidly.

With the heightened emphasis on a just and inclusive energy transition, board members must grapple with questions that go to the heart of their companies’ operations. How will jobs be affected? What support systems are in place for workers in industries that are being phased out? How will communities that rely on fossil fuels be supported in this transition? These are not peripheral concerns; they are central to the success of the energy transition.

What’s more, a just transition is not just about mitigating risks—it’s about seizing opportunities. Companies that can navigate this transition while supporting their workers and communities will be better placed to gain the trust of consumers, investors and regulators. Board members and senior executives would be well-advised to look at it as a chance to demonstrate leadership, build stronger relationships with stakeholders, and create long-term value.

For many, the notion of a just transition has been a theoretical exercise—a noble aspiration but not a strategic imperative. That attitude needs to change. As I see it, companies will emerge as either winners or losers.

Ignite your inner stewardship

So, what does this all mean for you as a board member? Most important, the time for vague aspirations and incremental steps has passed. Here are some critical considerations to ensure that your company not only survives but thrives in this new era:

1. Overhaul your assessment of risk—now. Something is seriously wrong if your company’s risk management model doesn’t fully integrate climate, biodiversity and social risks. These can affect everything from your supply chain to your financial performance. Board members must push for the immediate and thorough integration of these risks (while also considering how they are interconnected) into the company’s overall risk management framework. This isn’t just about ticking a box; it’s about ensuring your company’s long-term viability in an informed world.
2. Stop talking and start collaborating. The days of going it alone are over. The global challenges we face are too complex and too interconnected for any company to tackle on its own. Boards should be driving their companies to form alliances, not just with other businesses but with governments, non-governmental organizations and other stakeholders. Global collaboration is no longer just an option—it’s a necessity.
3. Demand technological integration. Technology is a double-edged sword. It can solve problems but it can also exacerbate them. Boards must ensure that their companies are using technology as a force for good. This means using AI, data analytics and other digital tools to enhance sustainability performance, improve transparency and make more informed decisions. But it also means being vigilant about the potential downsides, such as the environmental impact of data centers or the ethical issues created by AI. Board members need to push for a refined tech strategy that is aligned with their company’s sustainability goals and values.
4. Rethink executive compensation. If you’re serious about driving change, you need to put your money where your mouth is. That means tying executive compensation directly to the achievement of environmental, social and governance goals. This is not just about incentivizing the right behaviors; it’s about sending a clear message to the market that your company is committed to doing the right thing. And let’s be clear: vague, broad-based measurements of sustainability won’t cut it. The goals must be specific, measurable and directly linked to the company’s overall strategy.
5. Prepare for aggressive regulation and market shifts. We’re undoubtedly heading towards a period of more stringent regulation and changing market dynamics. Boards must be proactive in anticipating these changes and adjusting their strategies accordingly. Waiting until the regulations are in place or the market shifts will leave your company playing catch-up. Instead, be the leader that others follow. There’s no better way of leaving your competitors in the dust.

A defining moment

The series of upcoming global events could be a watershed moment for businesses worldwide. These get-togethers are not just important—they will be defining. The discussions and decisions in New York, Cali, Baku and Davos will set the corporate agenda for the next decade, and companies that fail to respond will find themselves left behind.

As we prepare for these critical events, ask yourself: Is my company ready to lead, or is it in danger of being left behind as the world changes around it? Does my board want to be driven by aspiration or mere compliance?

The choices we make today will determine the legacy we leave behind, both for our businesses and for the planet. The world is watching and history will judge our actions. Let’s make sure we are on the right side of that judgment. The stakes couldn’t be higher.