Building an inclusive boardroom together
Boards play a critical role in setting the tone for inclusive leadership.
A collection of governance-related news that you might have missed in the past two weeks.
Governance is often in the headlines, and the last few weeks have been no exception. Recent news related to governance includes:
Good governance practice isn’t just about compliance – it’s fundamental to long-term performance. That’s the message from new research examining 40 years of data across more than 1,000 publicly-listed mining companies in the United States. The study “Production and Externalities: The Role of Corporate Governance” finds a striking gap between climate ambition and board capability: just 6.8 per cent of directors had any measurable climate-related expertise.
The implications for boards are clear. Companies with stronger governance and better climate oversight delivered better returns and were more resilient over time. In contrast, firms that added climate targets without upgrading board expertise often underperformed – suggesting that strategy without substance is not a winning formula.
For New Zealand directors, this points to four key lessons:
This research reinforces the Institute of Directors and Chapter Zero NZ’s guidance: governing for climate isn’t an add-on. It’s part of governing well.
Read more: Here
Quantum computing, often viewed as a looming threat to encryption, may in fact herald a scientific renaissance rather than a cybersecurity crisis. While it's true that quantum machines have the potential to break traditional encryption methods, the formidable energy demands and computational power needed may mean that only nation-states and tech giants are likely to harness such capabilities in the near term. Consequently, these entities are more inclined to channel quantum computing's power into transformative fields like pharmaceuticals, healthcare and advanced materials science, where the technology can drive significant breakthroughs.
For directors, this perspective underscores the importance of not succumbing to alarmist narratives about quantum threats to data security. Instead, it's prudent to focus on the broader horizon, recognising quantum computing's potential to revolutionise industries and create new opportunities. Strategic investments in quantum research and development could position organisations at the forefront of innovation, leveraging quantum advancements to foster growth and competitive advantage.
Read more: Here
As political sentiment in the United States continues to reshape corporate culture, a new trend is emerging: major companies are rebranding their diversity, equity and inclusion (DEI) initiatives to maintain momentum while navigating heightened scrutiny.
In a recent CNBC report, executives revealed that while DEI is still a priority, it is increasingly being integrated under alternative frameworks such as "talent strategy", "workforce innovation" or “belonging and wellbeing”. This strategic reframing helps organisations avoid political backlash without abandoning the core objectives of inclusion and representation.
For New Zealand directors, the key insight is clear: naming and framing does matter.
Counterpart directors in Canada are choosing mostly to “finesse” their board and organisation efforts to engage people with the appropriate skills, experience and worldview. They are adopting a fight-or-flight strategy.
New Zealand boards should consider how what they have called DEI to date is positioned in strategy and communications, particularly in polarised environments. While New Zealand’s context differs from the United States, the lesson remains relevant – embedding efforts to get the right people in the right roles into broader organisational purpose and culture can strengthen resilience and reduce exposure to politicised debate. Directors should remain vigilant in their oversight of culture, talent and risk – ensuring inclusive governance continues to be actioned, not just advocated for.
Read more: Here