In November 2015, I got a surprising call from investors heading to the COP21 climate conference in Paris. They wanted help finding directors with climate skills. I had to admit that I didn’t have a list and didn’t feel I had the right expertise myself, despite focusing on sustainable finance for years.
That call did spark something special. It led to the creation of the Chapter Zero Alliance, a global network that now includes 34 groups across over 70 countries. With support from the World Economic Forum, we built principles for effective climate governance. These principles aim to help board directors integrate climate action into their corporate strategies.
In January 2026, we launched updated guidelines that emphasize not just climate but also nature. This comes at a challenging time; geopolitical issues are pushing climate concerns aside. Still, science remains unyielding. The urgency of climate change hasn’t diminished, and business as usual is no longer sustainable.
Facing a world where extreme weather is becoming commonplace, businesses must now consider climate risks as crucial factors in decision-making. Boards that set clear climate goals can create a chain reaction: meaningful actions, practical plans, and unified missions throughout their organizations. Governance is vital to ensure these plans are achievable and everyone understands the long-term goals.
Recognizing knowledge gaps in the boardroom is essential. Not every director will have deep expertise in climate matters. It’s crucial to be open to bringing in external help when needed. Climate science is as fundamental as understanding gravity; ignoring it would be reckless. As global temperatures crossed 1.5°C for the first time in 2024, it’s clearer than ever that urgent action is required.
According to a study by the London Stock Exchange Group, green industries have seen stronger long-term performance. Over a 15-year period, stocks with significant exposure to the green economy outperformed their peers by 59%. This demonstrates that fostering sustainability isn’t just ethical—it can also yield financial benefits.
Boards face the tough task of guiding fossil fuel companies through this climate crisis. While some are investing in renewables, many aren’t. Developing long-term strategies and stress-testing various scenarios can help navigate these challenges effectively.
Lastly, let’s acknowledge that making climate action a priority isn’t straightforward. The current geopolitical landscape adds complexity. However, commitment to climate strategies must remain steadfast. Individual directors need to be ready to question and advocate for essential changes.
Though challenging, many of us in the Chapter Zero Alliance are united in this mission, drawing strength and inspiration from each other. It’s clear: engaging with climate action is not only a moral obligation but also a path to business success.
For more insights on climate governance and action, check out the Chapter Zero Alliance.
