Competing in the age of disruption
Boards have a golden opportunity – to reimagine governance, rewire value and shape the next economic chapter.
This year has already seen greater disruption of economic and geopolitical norms than at any time in recent decades. Businesses face an increasingly fractured international context, tight domestic economic conditions and an inevitable long-term transition to a more sustainable economy. Whether that transition is orderly or disorderly depends on action now. The question for directors is how do they lead through these choppy waters?
DLA Piper has been working with the University of Cambridge Institute for Sustainability Leadership (CISL) on The Future of Boards project to explore the evolving role of boards in navigating systemic risks and delivering long-term value.
The research findings are clear: sustainability is no longer the domain of corporate social responsibility teams or external advisors. It belongs at the heart of boardroom decision-making.
In its latest business briefing, ‘Competing in the Age of Disruption’, CISL delivers a compelling message to business leaders. Directors must now lead with foresight, courage and a readiness to shape the future rather than be shaped by it.
A new kind of competitiveness
Systemic risks such as climate disruption, resource scarcity and social instability are materially affecting corporate performance, insurance costs, supply chain resilience and investor confidence. As one CISL contributor observed: “Politics may change but the laws of nature do not.”
Boards that treat climate and nature-related risks as regulatory or reputational concerns alone risk missing the bigger picture. Boards should focus on value creation, risk mitigation, and seizing early-mover advantage in what will be the defining economic transformation of our time. Align sustainability not only with governance, but with investment, innovation and influence. The winners of this transition will not be the most compliant, but the most proactive.
CISL’s message is clear: transition is inevitable. The only question is whether we lead it or respond too late.
The New Zealand context
Locally, momentum is building. New Zealand’s mandatory climate-related disclosures regime, net-zero commitments, and policy emphasis on nature and resilience are part of a global regulatory shift. NZX-listed companies, Crown entities and large organisations are already required to consider climate risks as material governance issues.
To compete in future-fit markets, New Zealand directors must now ask:
- Are we building the capability to lead in a low-carbon, resource-constrained world?
- Are we leveraging sustainability data to identify innovation opportunities, not just risks?
- Are we shaping the regulatory and capital environments we will need to thrive?
Directors can bring climate risk into the heart of strategy, demand credible transition plans and ensure sustainability investments are evaluated with the same commercial rigour as any other business opportunity. But beyond resilience, there is an opportunity to shape markets, redefine value and lead industries into the next economic era.
Strategic priorities for business leadership
The CISL report highlights six imperatives for directors:
- Shift from compliance to competition: treat sustainability as a strategic lever, not a reporting burden.
- Avoid the ESG trap: resist the temptation of tokenism; focus on value creation and impact.
- Build future-fit capabilities: integrate sustainability metrics with financial dashboards to inform real-time decisions.
- Lead market innovation: align investment with emerging technologies and low-emissions business models.
- Shape the rules: engage in policy dialogue and advocacy that supports just, ambitious transition pathways.
- Collaborate to amplify influence: form alliances to develop shared frameworks, standards and sector-wide solutions.
These imperatives are not optional. They are foundational to board-level decision-making in a disrupted market.
Governance for a disrupted economy
Boards must integrate climate and sustainability data into their oversight of strategy, risk and capital allocation. That means asking better questions – and demanding better insights.
The Future of Boards’ research outlines a set of practical tools for boards, including 20 questions to assess board readiness for long-term sustainable value creation. These include:
- Is your board receiving decision-useful sustainability data – not just disclosure summaries?
- Can you interrogate sustainability risks and opportunities credibly?
- How are you investing in foresight – through scenario planning, advisory boards or strategic partnerships?
Sustainability is not a separate stream of governance. It is core to the director’s mandate of stewardship, value protection and long-term performance.
Our opportunity
In a region defined by natural capital, export exposure and community expectation, New Zealand directors have a unique opportunity to lead. Our regulatory trajectory is aligned with global shifts – and our businesses are already innovating in sectors such as renewable energy, regenerative agriculture, circular supply chains and sustainable finance.
The most successful boards will be those who step forward now – to reimagine governance, rewire value and shape the next economic chapter. Transition will not be comfortable, but for those who understand the stakes and step up, it will be the making of market leaders.
As the CISL report concludes: “The biggest risk is not acting too soon – it is being too late.” Boards that hesitate may soon find the market has moved without them.
