#91 Leading with Purpose - Climate Action for a Sustainable Future

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Hi, everyone, and welcome back to the Proteus Leaders Show. My guest today is Helle Bang Jørgensen, an internationally recognized expert in governance and sustainable business with over 30 years of experience turning environmental, social, and governance risks into opportunities. Helle is the CEO and founder of Competent Boards, a global organization that provides leading certification and training in sustainability, climate, and ESG for board members and executives worldwide. She's also the author of Stewards of the Future: A Guide for Competent Boards, where she explores the essential role of governance in navigating sustainability. Helle, it's an honor to have you with us today.

Thank you for inviting me. It's an honor to be here. And can I say thank you for being a Competent Boards alum?

Yes, this is how I got to know you, Helle, and I really want this to be known by the entire world because it helped me on a daily basis in my board member role. Now let's jump in on this very important climate subject. With the recent terrifying events in Valencia, Spain, many of us have a sense of urgency to take action on climate. Can you explain further about the emergency around climate change from your perspective?

Oh yes, I think you said it. And open up most news stations around the world and you'll see, you'll hear that Climate change is rapidly changing the nature of business, but also our lives and livelihoods. Talk to your friends, and most of us have someone who is directly or indirectly impacted. I think, unfortunately, many businesses and their board directors are not fully ready for all the invoices that Mother Nature is sending us. Another emergency is that their boards need to be trained and fast. Because let's face it, as you say, climate change is no longer a distant threat. It's here. Mm-hmm. And it's reshaping the way business operate, the way we operate. And we need board leaders who can both navigate and, dare I say, capitalize on this complex landscape. So we, you current and future board leaders, must understand climate and governance challenges. And that's as Competent Boards enable board leaders to do that. And that's why I started. That's why I founded Competent Boards to ensure that current and aspiring leaders gain the knowledge and tools to not only meet, but also to lead the response to these urgent climate challenges.

Yes. And it's such a complex issue. I don't doubt that all of us as leaders, we want to do something about it. Now, where to start? So your book, Stewards of the Future, highlights that growing role of governance in tackling climate issues. What What do you hope executives and board members take away from that book in terms of priorities and actions?

I think one of the sentiments that many are sharing after having read it is what, and I have it here, Chad Holliday, who is the former chair of Bank of America and Shell, wrote when I asked him to do a praise for the book. And he wrote, I wish I had read this book many years ago. And then he talks about the value and the insight and foresight that I share in the book. And I also hear that leaders are using the book to think differently and on how to be more proactive. One of the things we really need to do, we can't just sit and wait. And what, what's that next best practices will look like. How do we see around corners? And supporting networks with other forward-thinking leaders will be crucial factors for future board leaders to successfully guide the companies through the climate challenges, both of today and tomorrow. And I guess I'm proud that Competent Boards offers these individuals and boardrooms this unique opportunity to develop these assets, I don't know what to call it, and become leaders in the field like you.

Yeah, thank you. So what I'm hearing is really step number one is at the individual level, leaders need to educate themselves, right, and understand what are those complexities and how to address it in the particular situation. Second, is looking at the frameworks and how to integrate that within the operational mechanisms of the company. And so it's not just something on the side. Now, on that, because I find it tricky, what are good examples that you've seen? I mean, you've interviewed so many CEOs that have done that. What is the secret sauce to do this?

I think the number one is that we as leaders, we as board members, we as human beings, we have to approach climate change and climate imperatives not as separate from everything else, not as separate from the business strategy, not as separate from governance, not as separate from our life. Because integral to our long-term success, and dare I say also to our short-term success. We need to have the insight, we need to have the foresight to make informed decisions. And you have heard me say that many times. How can you make informed decisions if you're not informed? And to me, it's important that it's not a theory, but that we equip leaders, and that's hopefully what we do at Competent Boards, equip leaders with the practical knowledge to integrate sustainability, climate thinking into the business strategies, to see the risk, to see the opportunities in time to react. I see now those leaders, those board members are being highly sought after, and that the value that they bring to the companies. You might know that we did this survey and 55% of alumni go on to secure a board seat or become a committee chair because many of them are board members when they join us. 98% of the alumni say that they're better equipped for the more intense demands of board position, and 96% feel that they are more confident when communicating with both other leaders, fellow board members, and stakeholders. That is what distinguishes forward-thinking board members from the rest. This is not about teaching theory. It's about building a powerful ecosystem of leaders who are actually shaping the future. So when alumni, Mm-hmm. Connect with other alumni in the nearly 60 countries we operate in now. It creates value for the individual. It creates value for the companies they serve, and it creates value for the society. That's my hope, and I see it's happening. People like you and many of the others, over 1,000 board directors and leaders, that's part of the Competent Boards Alumni Network. All those that have read the book, Stewards of the Future.

For sure, we support each other and it's great to have that support network we can reach out to ask questions because even as we're educating ourselves, the more I learn, the more I realize how much I need to learn and it's never ending, right? And it's an ever-evolving landscape. I wonder if you can talk a bit more about those leadership skills and additional skills that leaders really need on top of the knowledge that competent board provides them with? But what are those core skills we need to think about to make informed decisions on climate?

You need to be curious. You need to have that, I want to understand this. You also need to have the confidence to actually look at it and say, yes, I will go into the boardroom and have a discussion about this. And what I often see is that when people have heard some of the faculty, some of the leaders that we bring in to discuss with other leaders, their opinion, when they heard from their fellow, it's very much peer-to-peer, right? And fellow other people in the room, you start to get that understanding, you can bring that up. You also need to have the conscience of actually asking yourself, what is the purpose of this company? What is the purpose of the board? What's the purpose of why I serve at this board? You need to ask yourself, are we part of the solution? Are we part of the problem? And that goes to that purpose. You know, I believe that you as a director should leave the company better than you found it, but that's not only in terms of better share price. You need to leave the company and stakeholders better than you found. There's an indigenous principle called the 7 Generation Principle. the action you take today, what impact will that have 7 generations from now?

Wow.

And if we start to think about that, I, I also say from time to time, when you sit around the boardroom table, have a chair where you say, oh, that is Mother Nature. Have a chair where you say that is a young person. And then ask, that young person ask Mother Nature, you know, what do you think about the decision we're about to make? So look at that and then look 5, 10 years ahead, 3. What is it that the generation that will be sitting in front of us when we come and say, hey, we would like to borrow money for our company, We would like to have insurance. And there are other people that's sitting in front of us and saying, what have you done on this and this? Why should I invest in your company? Why should I insure your company?

This perspective is so helpful, Hélène, because I think it pushes us to think beyond the quarter, beyond the next 3 years, but actually the 7th generation. It's really our children, our grandchildren. And I really, for me, what you said resonates when you think about curiosity, to always be willing to learn, to be humble enough to know when you don't know. That confidence, I've experienced it recently where just making sure it's on the agenda, even before you speak up, but checking the upcoming agenda, when do we have climate on the agenda? And I'm the chair, as a chair of audit and risk committee, I can push for those agenda items to be there. I can invite experts, I can play a part. And then when the subject is being tackled, to your point, to have an opinion and to prepare for those board meetings, I think is also very important to think about Mother Nature in our preparation. What would she say about this?

Exactly. And what invoices directly or indirectly have we already received, right? Actually, in, in my next book, The Future Boardroom, I'm writing about the 10 C's of the boardroom that we need to have in, in the leaders of today and tomorrow. So we can talk about that when that book is out.

Absolutely. That's a nice teaser. When I used to be in movie, you always put the little teaser. That's wonderful. Now, at the Proteus Leader Show, we love to leave our listeners with some action steps. And so what Practical steps you think leaders can take from today about climate to make a genuine impact on the world?

As I said, get started. Ask yourself, what are the products that we have today? Are they part of the solution? Are they part of the problem? Ask yourself, what is it that our employees will be saying about what we do in a few years' time? Will we be able to get those employees? Will we be able to get the finance we need? Will we be able to get the insurance? Questions like that. It informs you about what are the steps that you need to take. Then need to ask that question, as I said, also in terms of purpose. What is the purpose? But also, do we want to be a leader? Do we want to be a follower? Do we want to not be a going concern? Where do we want to be on that? What we need right now is we need not only leaders, we need courageous leaders that will step up, that not only talk About what they are to do, but actually look at it as this is the way forward. We can have all our retirement funds, but if we're sitting there and looking at fires and floods and droughts and can't really go anywhere, is it worth it? Or would it be better to do something right now? I think it was actually a British newspaper. I think I just saw what says. In terms of what's happening, as you started with in Valencia, adapt to climate change or die. That might be a little bit— but clearly we have lost a lot of people also in Valencia, as we lost a lot of people in North America, as we lost a lot of people in Bangladesh, as we lost a lot of people all around the world, China. So this isn't— this is not just something— That is in the newspaper. It's happening every single day, and it's impacting not only the lives, it's impacting the businesses, it's impacting the supply chains. And hey, we all know that if one of your loved ones, let's just say the basement is flooded, that impacts you. It impacts those people that go to work thinking about, oh, what should I do with that? So it's also impacting right now the productivity if we really want to be very pragmatic. So there's just one way, and that is start to understand all of the impact and how we can mitigate and adapt to a different world.

Thank you, Ella. It's a serious issue and a call to action. When I listen to you, I feel the urgency and the responsibility. To, to take part in the solution. I'm so grateful you shared those valuable insights with us today, especially because you've highlighted both the governance part of it, but also the, the practicalities of it and the key questions we need to ask ourselves and our boards and our businesses. Listeners, if you're interested in learning more about Ella's work and Competent Boards programs, visit competentboards.com. Or read her book, Stewards of the Future, or the next one, we'll do another podcast about that. And to see how Proteus supports leaders and organizations in aligning purpose and performance, visit us at proteus-international.com. Thank you, Ella, again.

Thank you. Wonderful to, to be here with you.

So thank you all for listening. And until next time, here's to creating the life you truly want.

We hope you're feeling better equipped to create the career, the business, and the life you want. To find out more about how we support our clients in leadership, learning, and change, visit us at proteus-international.com. Have an excellent day, and thanks for listening.