Renowned professional firm, Deloitte recently in its survey report titled “Chair of the future - The role of the Chair in climate transition” suggested that Companies should link executive compensation to specific milestones for achieving their net-zero goals, and establish board committees to supervise climate initiatives. The survey report explored the insights of company leadership on climate change, its integration with business strategies, and the potential role of the boards of directors. The report, citing the recommendations of the chairpersons surveyed, said that incentivizing environmental, social, and governance (ESG) objectives within corporate boardrooms is pivotal to effectively addressing climate change. It also underscored the importance of commitment by the leadership, particularly from the CEO and the executive team. CEO compensation should have one component related to ESG performance. As climate change risks escalate, the 'Chair of the future' must direct the leadership’s focus towards adaptation and mitigation strategies, and incentivise alignments between individual and organisational goals towards sustainability.

 
The Deloitte survey also highlighted the participating chairpersons' suggestions to establish dedicated committees within boards for overseeing climate action, mirroring the role of audit committees in companies, which oversee accounting policies and statutory audits. Regulators, investors and customers are the key drivers of sustainable business practices in the corporate sector.

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