Are directors doing enough on climate?

Chapter Zero NZ’s first Impact Report reveals that company directors are making good progress on their climate response.

Climate issues are not just a concern for listed companies. With more than 500 thousand SMEs in Aotearoa contributing over a quarter of New Zealand’s GDP, Kiwi businesses and their boards need to be doing more to address the cataclysmic effects of extreme weather events relating to climate change. Ignoring the matter, will impact future generations. 

So, are directors doing enough about climate? That may well be the question at the heart of Chapter Zero New Zealand’s first Impact Report, which has just been released.

Now in its second year, the New Zealand arm of the Climate Governance Initiative (CGI) led in collaboration with the World Economic Forum is making strong and consistent headway with the director community, according to Phil Veal who is on Chapter Zero NZ’s steering committee.

“Chapter Zero is there to equip boards with the knowledge and tools they need to tackle climate-related issues at the board table. Directors understand that climate is a priority, but it is also a very new issue, which we are all getting our heads around,” says Veal.

To date, more than 1200 directors have signed up to Chapter Zero NZ and Veal sees this as indicative of much needed practical information for the governance community.

Veal has experience in the private company and innovation space, and runs an investment company that focuses on mid-sized New Zealand businesses. He has led Kiwi companies Hellers, Magic Memories, Skyline Healthcare (air ambulance), Tuatara Brewing, New Zealand Mint, Phoenix Metal Recyclers, and Natural Habitats, and his portfolio extends to global businesses.

Having recently stepped down from the role of chair at Kea, Veal understands that being on a board and addressing climate requires collaboration and leaning on the knowledge of others to find the best solutions.

“Creating a community of directors is really important going forward, including having a collective voice so that those in the governance community can feel comfortable seeking support and working together to share knowledge and tools. We know that climate needs to rise to the top of the board agenda – if it isn’t there already – and accountability is necessary for businesses to be on the road to net zero carbon emissions by 2050. Chapter Zero NZ is helping directors and boards get there,” he says.

Chapter Zero NZ is hosted by the Institute of Directors New Zealand. Since its inception in March 2022, it has been running national events and creating resources for the director community, more recently, this includes a Board Toolkit. Released in March this year, the Toolkit provides directors with a practical five-step framework to ensure the climate challenge is effectively addressed at the board table and is targeted at boards with limited resources and support for climate action. This includes small and medium-sized enterprises, and not-for-profit organisations as well as those directors just beginning their climate governance journey.

As a resource, the Board Toolkit has now been downloaded more than 700 times. The question is, are the numbers enough to make a dent on the issue?

Veal says climate is on the radar of boards across the country.

“While other governance issues also add to the load being addressed by boards, directors are acutely aware that climate issues aren’t going away any time soon. But the benefit for boards isn’t just in seeing the risks, but also the opportunities for their organisations if they address climate. Because doing good for the planet is also better for productivity, better for people and better for business – that’s the reality.”

Chapter Zero New Zealand is hosted by the Institute of Directors and part of a global network of directors. It is working to mobilise, connect, educate and equip directors to effectively govern New Zealand organisations on the response to climate change and drive the global goal to achieve net zero carbon emissions by 2050. For more information go to: https://www.chapterzero.nz/