Leading Through Change: Sustainability, Strategy, and Skilled Stewardship

As companies wrestle with intensifying environmental, social, and economic pressures, corporate boards face a daunting yet thrilling challenge: How can they genuinely lead during an era demanding both speed and systemic transformation? Pursuing a sustainable future now requires a more dynamic, interconnected approach than ever. It's about moving beyond policy declarations and embracing tangible, responsible action that addresses climate, nature, and societal needs.

This November, I’ll be in Mumbai, meeting with Indian business leaders and board members to collaboratively design a stewardship path that aligns with these evolving imperatives. Together, we will tackle some of today’s biggest questions: How can we, as board members, make decisions that balance urgency with lasting impact? What does equipping ourselves with "green skills" that ensure long-term resilience mean?

This month’s newsletter draws on articles I wrote and contributed to recently for FT Agenda and Reuters and insights from my recent interview with Dominic Barton, Chair of Rio Tinto, to frame a strategy for board leaders prepared to tackle today’s most pressing complexities.

The Energy Transition: A Boardroom Mandate

The energy transition is no longer just a line item on board agendas; it’s becoming one of the most defining challenges—and opportunities—facing companies today. Moving from traditional energy models to sustainable, renewable systems calls for decisions far beyond emissions targets or net-zero commitments. As the FT Agenda article discussed, this shift requires long-term, transformative thinking on capital allocation, workforce reskilling, and stakeholder engagement. But how can boards approach this transition in ways that drive both business and societal value?

Boards have a unique role here. The energy transition is reshaping everything from supply chains, and resource needs to how businesses measure and report success. As you think about these shifts, what core values guide your board's decisions? Are the current business models and metrics flexible enough to accommodate the long view, especially regarding capital allocation? Investing in transformative technologies like hydrogen and nuclear fusion or building partnerships with academic and startup innovators requires a long-term mindset. What conversations is your board about aligning these investments with a broader vision of resilience and shared prosperity?

The success of this transition depends not only on the innovations themselves but on how thoughtfully boards address the human side of change.

How can boards best prepare to lead an equitable transition? This is about who we include in our planning and whose voices we amplify in the boardroom. Are we considering the potential impacts on the workforce, suppliers, and communities? Are we actively listening to these stakeholders and bringing their insights into our planning discussions? Equity doesn’t mean all stakeholders will be affected equally, but it does mean that we should create a pathway for them to participate in and benefit from the shift. What steps are we taking to ensure this transition empowers rather than sidelines?

Addressing the Green Skills Gap in the Boardroom

There’s a profound, often unacknowledged gap in many boardrooms today: the green skills needed to effectively navigate sustainability risks and opportunities. As I pointed out in my article published by Reuters, data shows that only a small fraction of boards currently hold the depth of expertise required to make well-informed, strategic decisions around sustainability. This isn’t simply about understanding emissions targets or sustainability metrics; it requires a more nuanced grasp of modern governance expectations—insights that can shape long-term resilience and business innovation.

So, how do we approach this shortfall? Rather than seeing it as a problem, could we view it as an opportunity to strengthen the board’s role in stewarding a sustainable future??

Consider this: How might a board’s understanding of climate and nature issues transform its approach to strategy? Could filling this skills gap be as crucial to long-term success as traditional finance or governance knowledge?

Closing this gap may start with targeted education and intentional recruitment. Are we equipping current board members with learning opportunities to build their understanding of emerging sustainability challenges??

Imagine a boardroom where discussions of risk and opportunity naturally include insights on natural capital, resource scarcity, and regenerative practices. What difference could this level of awareness make when evaluating growth strategies, partnerships, or innovation? Should green expertise be embedded proactively, not just as a matter of compliance but as a foundation for resilience and competitive advantage? In an age when environmental and social risks directly affect financial outcomes, are we positioning the board to ask more informed questions, challenge assumptions, and lead with foresight?

This isn’t just about filling a knowledge gap; it’s about expanding the board’s capacity to act decisively in a world where sustainability has become indispensable.

Governance During Times of Transformation

One of the key insights emerging from my recent leader insights interview with Dominic Barton, the Chair of Rio Tinto, is that corporate leadership today requires a radical rethinking of governance models.

Companies must invest in leaders who understand the complexities of navigating crises—from climate change to societal polarization—while maintaining a long-term vision.

Leaders should actively engage with governments to advocate for regulatory stability and foster innovation across sectors. The current global context demands that we refine these governance approaches, emphasizing the boardroom's potential to be at the forefront of international sustainability standards.

Take the recent example at Disney, where a swift leadership shift brought James Gorman to the chair position to stabilize and refocus the company amid challenges. This move highlights the importance of agility in succession planning during periods of transformation. For boards, succession planning should be an integrated, ongoing process, ensuring that new leaders are ready to step in with the skills and resilience required for the future rather than reacting to crises.

A cow or a bull?

Ultimately, the future we are building requires a deep commitment to stewardship. The energy transition, the green skills gap, and governance agility are not isolated issues; they are interconnected threads in a fabric that will define tomorrow’s corporations. Our boardrooms must embody the courage, adaptability, and foresight needed to lead responsibly. Meeting this challenge requires more than technical know-how—it demands a mindset of stewardship that sees beyond immediate profits to the lasting value created by a just, sustainable world.

I’ll leave you with a thought: When a storm approaches, cows run from it, exhausting themselves and staying longer in it. On the other hand, bulls charge into the storm, facing it head-on and minimizing their suffering.

What do you do when you see a storm coming?