Harnessing the Board voice in uncertain times

The public debate and political consensus on climate change have turned in recent years, as trust erodes in the face of global crises. Despite this, the urgency of action has not diminished.  

Real progress is being made and gives cause for optimism. This year should see $2.2tn of investment flow into low-carbon energy and the World Business Council for Sustainable Development (WBCSD) finds that 91% of surveyed business leaders have maintained or increased their investment in the energy transition over the last year. 

In the current climate, described as a ‘crisis of grievance’, only business is viewed as both ethical and competent, achieving higher trust metrics than governments, academia and the media. This creates a unique window for transformative impact for board leaders, by showcasing that decarbonisation can be delivered and create tangible economic benefits for us all. 

Navigating an era of disruption

The challenge comes in taking up this mantle while delivering on a long list of critical strategic priorities, from adapting to economic instability, to cyber and emerging technologies. Businesses and board leaders are faced with a cascading series of  issues alongside the need to mitigate climate change and strengthen resilience.  

However, good governance and a truly sustainable business model that will thrive long into the future requires a joined-up consideration of these challenges. There are numerous interdependencies between climate and key issues from artificial intelligence adoption to skills gaps and regulatory compliance. Leadership and impact flows from understanding and acting to address these challenges in tandem. 

Despite these competing priorities, we consistently engage with proactive board members that still recognise that addressing climate change is a fundamental part of building a resilient, purpose-driven, and profitable business. This reflects the fundamental truth that ambitious action now represents a rational response to protect businesses and ensure their resilience.  

Many businesses continue to lead by example. A new campaign from Chapter Zero, supported by the LSEG Foundation, demonstrates how businesses are delivering in practice through conversations between Chairs, directors and the C-suite.  The transition is happening, and maintaining this long-term view is precisely what cements the unique position of trust that businesses have secured. It is the key to future impact. 

Harnessing the Board voice

The unique position of business and board leaders as stewards of long-term perspective and future prosperity is made crystal clear by Richard Gillingwater, former SSE Chair (from 2015-2021), and Chapter Zero Supporting Chair in the LSEG Foundation series. 

Richard notes that “During the period I was Chair, and during this subsequent period (during Sir John Manzoni’s tenure as Chair), SSE has had one CEO for 12 years. During that time, we have had 23 energy ministers and secretaries of state”. This consistency pays dividends, as evidenced by their vital role in the transition of the company and, in turn, SSE’s wider role in decarbonising the UK economy. 

Effectively communicating the optimistic business case for climate action is another crucial part of driving positive outcomes from the boardroom. Rita Clifton CBE, Portfolio Chair and Non-executive Director, discussed this with me as part of the series.  

Rita highlighted that political changes have forced us to think about how we describe what we do, and how important it is in clear, straightforward language. This aligns with the message we hear from members, that there isn’t a retreat from climate action, rather that it is becoming embedded into core business strategy.  

The tangible and measurable action taken by businesses even in these challenging times, demonstrates that the private sector remains committed to making progress at pace, because it makes economic sense. By extension, board leaders have an invaluable role to play in continuing this progress in their own organisations and providing a trusted, long-term perspective on our future. They are invaluable champions for ambitious action across the economy.   

At a time when society’s trust is in question, the forward-looking board perspective can be an example to us all. Considered expertise and rational judgement around strategic decision making and trade-offs, is their stock-in-trade.  

Chapter Zero stands ready to equip and inspire its members to come together and share best practice and know-how so we can learn together and accelerate the transition to the net zero economy.