Turning Board Sustainability Aspirations into Action

Boards are key to unlocking substantive action by firms on sustainability. We clarify their potential role and show how and why they are failing to deliver on that role and what can be done about it. We start by highlighting the importance of board engagement as a driver of sustainability and then report research evidence of limited board attention to the topic. This is short-sighted given the significance of sustainability but also as a matter of good corporate governance. Nonetheless, recent survey research provides encouraging evidence to suggest that many boards have the right aspirations when it comes to sustainability—they are convinced it is a strategic necessity. Often, however, they do not have what is required in terms of the people, knowledge and tools to turn those aspirations into meaningful action. Our in-depth interviews with board directors examined the obstacles to board attention to sustainability from inside the boardroom, including the characteristics of board members themselves. We identified five board sustainability archetypes: The Deniers, The Hard-headed, The Well-Meaning, The Complacent, and The True Believers. We characterize each archetype and explain how they can be identified by executives or consultants working with the board or by board members themselves. We offer recommendations for how to respond to the different archetypes and how more generally boards can advance the sustainability agenda.