Reflections from the IoD & Chapter Zero Climate Governance Forum

Last week I attended the IoD & Chapter Zero New Zealand Climate Governance Forum in Auckland and joined a room full of board directors, advisors and governance professionals grappling with what climate risk means for the future of business.

The speakers were impressive, the discussion serious. And while I’ve attended and contributed to many such events around the world over the past two decades, it’s always grounding to hear these conversations closer to home. The setting may be different, but as the self-styled ‘Sustainability Champion’ Izzy Fenwick compellingly pointed out, the stakes are just as high.

Reflecting on the day, what struck me most wasn’t what was said — but how I think it is being received.

Climate is a critical issue. But like many others — from AI to inequality — it’s still too often treated as a stand-alone or siloed topic; something for business leaders to be aware of, to be concerned about and maybe even taken into account, but ultimately separate from the core governance of business itself.

In purpose-driven organisations, that separation doesn’t exist. These issues are not peripheral — they are integral to the business’s reason for being, how it is governed and fundamental to long-term relevance and commercial success.

Purpose is not just a soft or symbolic notion, as the IoD’s Judene Edgar eloquently highlights in the autumn issue of the organisation’s Boardroom magazine. Purpose — properly identified, defined and embedded — ensures that complex, interconnected challenges are not treated as trade-offs or compliance burdens that get in the way of business as usual. Instead, it frames them as essential to building a resilient, relevant and competitive organisation in the 21st century.

Just last week, the European Central Bank confirmed it will integrate climate risk into its collateral framework — a clear signal that environmental resilience is no longer a side issue or policy preference. It’s a material governance concern with implications for businesses across the globe. And it’s a timely reminder of how fast expectations are shifting — and how urgently boards must adapt.

A clearly articulated purpose — one that unifies strategy, brand, operations and governance through a strategic framework such as the Single Organizing Idea (SOI®) — isn’t a distraction. It’s a decision-making compass. It empowers boards to lead with integrity, align performance with long-term value and respond to complexity — whether environmental, social, technological or geopolitical — with clarity and confidence.

New Zealand’s businesses have much to offer the world. But first, we must do the work at home — turning purpose from intangible platitudes into tangible, day-to-day business practice and leadership.

The Forum reminded me that understanding may be growing — and that’s encouraging. But there’s still a long way to go. And we don’t have the luxury of time.

Now is the moment to fully inform and empower boards about the power and potential of purpose — not just so they can effectively oversee the future success of their businesses, but so they can help shape the future of the country and the communities their businesses serve and rely on.

That’s not a side conversation. It’s the job.