Board directors call for mindset shift on the climate transition

More than four in five board directors see climate action as a mid-high priority, but many feel they have limited influence on how sustainability strategies are implemented across companies.

According to a Kantar survey of 240 independent board directors, a wide majority believe there’s a gap between companies’ climate strategies and action. 84% report that climate action is one of their boards’ top priorities, but very few believe they are able to influence value chain engagement (12%), product innovation (10%) and industry engagement (9%) – despite these being key elements of a successful climate plan.

Instead, strategy and business models (55%), reporting (47%) and compliance (38%) are the key areas of focus for boards in 2025.

More than half of organisations yet to publish transition plans 

Other aspects of the survey also emphasise this gap between strategy and action: for example, more than half of organisations (52%) do not expect to publish a transition plan in the next 12 months.

Jonathan Hall, Executive Managing Director, Sustainable Transformation Practice, Kantar, said: “It’s reassuring that board directors see the transition as critical to business resilience. However, their influence over activation areas like product development and value chain engagement is limited due to the nature of their roles. 

“Addressing the widespread strategy-action gap is essential, alongside new forms of leadership, enhanced communications skills and a focus on sustainable growth and opportunity. And with the EU’s Corporate Sustainability Reporting Directive still on the horizon, and reporting taking up so much airtime, it’s encouraging that board directors are still making strategy their top climate priority for 2025.” 

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Towards new forms of leadership

Board members understand that their level of influence is inadequate for the challenges of the climate transition: 96% feel able to influence their organisation’s direction on climate change – yet 88% believe new forms of leadership are necessary to address climate issues. 

These new forms of leadership could include “a mindset shift on climate and adopting new leadership and collaboration techniques”, Kantar suggests, adding that local Climate Governance Initiative Chapters have proven to be a source of inspiration for boardroom climate action.

Board directors believe this mindset change is what will turn the climate transition from a compliance-driven cost centre to an opportunity for value creation –  with the vast majority of respondents (84%) saying that climate is an innovation opportunity for businesses.

Emily Farnworth, Executive Director, Climate Governance Initiative, said: “This study clearly demonstrates the transformative impact that engaged external board directors can have on their organisations’ response to the climate challenge. But many still feel unable to influence important elements of transition planning and delivery. Now’s the time for board directors to enhance their knowledge, build confidence and equip themselves with the skills they need to tackle the pressing climate challenges of our time.”