How corporate boards can lead on climate governance
Members of the Climate Governance Committee, from left: Nancy Desrosiers, Sophie Audousset-Coulier, Anne-Josee Laquerre, Anne-Marie Croteau, Emmanuelle Letourneau, Sonia Li Trottier, Claudine Trahan, Jordan Lebel
“Crisis brings opportunity,” remarked Jordan LeBel, academic director of the John Molson Executive Centre, as he opened the Climate Governance Workshop, which took place on March 28.
His words captured the event’s undercurrent: that the ecological, economic and geopolitical instability of our times can serve as a catalyst for rethinking how organizations approach climate risk and long-term value creation.
The workshop was hosted by Dr. Anne-Marie Croteau, dean of the John Molson School of Business, and was co-organized by the John Molson Executive Centre, along with the Canada Climate Law Initiative, Québec Net Positif and the John Molson Climate Business Institute. The event brought together board members, academics and industry professionals to address the evolving responsibilities of corporate boards through three key questions:
- How can directors strengthen their oversight and advisory roles on climate issues?
- How do you integrate climate governance across the value chain?
- How do you mobilize allies?
Defining the role of board members
The workshop explored the questions board members should ask themselves in their dual role as supervisors and advisors in climate governance, which still needs to be meaningfully embedded into boardroom agendas.
Board members are often at different stages of climate awareness — ranging from superficial acknowledgment to genuine commitment. As one participant put it, “The question is no longer if climate belongs in the boardroom, but whether we have the right people, with the right expertise, around the table to ask the hard questions — and act on the answers.”
Several participants emphasized that boards often receive financial figures with little to no data related to environmental impact, making it difficult to build any climate literacy. To bridge this gap, continuous training and comprehensive data on climate impacts are essential.
“It is not enough to assume that directors understand climate risk,” said one participant. “We have to offer 101-level training to make sure everyone in the organization is on the same page.”
Participants also agreed that climate governance is, fundamentally, good governance. To achieve this, it’s essential to incorporate climate considerations into every aspect of the organization's operation — from the lifecycle of its products to supplier relations. It’s also critical for climate expectations to be clearly communicated to partners and stakeholders.
Participants engage in a group discussion at the Climate Governance Workshop held at Concordia University on March 28, 2025
Climate governance and the supply chain
The workshop examined how companies can leverage their supply chains to advance climate governance. For instance, Cogeco relocated operations out of Florida in response to extreme weather patterns — an example of climate risk mitigation rather than direct climate action. Hydro-Québec, on the other hand, revised its procurement strategies during the pandemic to enhance supply chain resilience, illustrating how climate considerations can shape operational decisions.
"Boards should not fall into the trap of managing the business directly," one participant said, "but when a supply chain crisis emerges, it escalates to the board level very quickly.”
Major companies like IKEA are already driving change by requiring suppliers to measure and report emissions, facing contract loss if they don’t comply.
Collaborative initiatives like the Canadian Sustainability Standards Board are proving effective by uniting large companies and their suppliers to align on Scope 3 targets —goals aimed at reducing indirect emissions across the supply chain, which remain difficult to tackle without integrating climate considerations into procurement. However, participants acknowledged that integrating climate into procurement remains a low priority for many companies.
Interestingly, small and medium enterprises (SMEs) may be better positioned to implement sustainable sourcing due to their inherent agility. In contrast, larger firms can often be constrained by complex systems.
Getting allies involved
The final discussion zeroed in on how to make climate action a priority across organizational ecosystems. To that end, participants emphasized the importance of embedding climate-related risk into mandatory risk management frameworks.
“Boards are often more reactive than proactive,” one participant said. “But the presence of engaged stakeholders — whether they are shareholders, clients, or even employee networks — can shift priorities.”
New generations might drive that reprioritization. Millennials and Gen Z are set to comprise almost one-third of the workforce within five years, and they have higher expectations around climate action. One progressive suggestion: reserve at least one board seat for a person under 35 to reflect these perspectives.
After all, inaction has its own risks. Beyond floods and wildfires, reputational damage and talent loss could be significant.
While some directors fear stakeholder activism, others see it as a constructive force. Local SME groupings and influential business networks, such as the Fédération des chefs d'entreprises du Québec, could be critical platforms for organically fostering ideas and collaborative climate action.
Mobilizing stakeholders and allies effectively requires a strategic balance: incorporating clear, measurable goals; proactively engaging stakeholders across the organizational ecosystem; and building internal resilience to navigate the increasingly complex landscape of climate governance.
Be the reason something blooms
Throughout the discussions, a recurring metaphor emerged: the need to shift from being "mosquitoes" — nagging and ineffective — to becoming pollinators — agents who seed ideas, build bridges, and help systems change and thrive.
“Don’t just sting once and disappear,” one participant remarked. “Bring knowledge, bring data, build capacity. Be the reason something blooms.”
If one message resonated, it was that climate governance is no longer an optional add-on. It’s a strategic imperative that demands courage, collaboration, and a new vision of leadership for a climate-challenged world.