WTW survey finds 48% of boards lack skills to oversee climate risks

A WTW and Nasdaq Center for Board Excellence survey of 349 board members across 44 countries found 48% acknowledged their boards lacked the skills to oversee climate risks, prompting WTW's launch of its Climate Vista board tool. As climate governance becomes central under IFRS S2 and transition-plan frameworks, the findings carry direct relevance for Indian boards' oversight responsibilities.

A survey by WTW and the Nasdaq Center for Board Excellence found almost half of respondents (48%) acknowledged their boards lacked the necessary skills and expertise to oversee climate risks. Only 62% said their boards dedicated sufficient time and resources to climate risk governance, while three-quarters recognised the value of a strong ESG strategy. The survey, titled Fostering Corporate Governance and Enhancing Board Effectiveness, drew 349 board members from 44 countries across six continents. WTW launched Climate Vista, a customisable tool delivering tailored sessions led by climate experts to assess boards' understanding and ambition.

The findings affect corporate boards and directors responsible for overseeing climate risks amid frameworks such as the ISSB's IFRS S2 Climate-related Disclosures and the Transition Plan Taskforce's Disclosure Framework. For Indian listed companies, where governance is a core pillar of disclosure expectations, the survey signals a widespread board-level skills gap. Indian directors and nomination committees should note risks flagged, including physical risks to operations, liability risks from inadequate disclosures, and transition risks, all of which inadequate governance can amplify.

WTW's Hannah Summers warned that pressure from governments, investors, and civil society will affect credit ratings, valuations, cost of capital, borrowing capacity, and insurance availability, making climate governance a boardroom priority for steering toward net-zero. Indian boards should assess their climate competency, dedicate adequate time and resources to climate risk oversight, and consider structured board-education tools. Monitoring evolving disclosure frameworks such as IFRS S2 and transition-plan requirements will help directors meet rising expectations on climate governance effectiveness.

Key figure — Board skills gap: 48% acknowledged boards lacked skills to oversee climate risks