Driven by geopolitical uncertainty, trade risks, and new technologies such as generative AI, the most profound business transformation in 50 years is underway. Alongside these factors, pressures from regulators and stakeholders are mounting around the reporting, transparency, and accountability of companies’ social and environmental impacts.

The effects of regulatory requirements such as the European Sustainability Reporting Standards—covering a range of sustainability issues, including climate change, biodiversity, and human rights—have a profound effect on organizations and their boards, according to recent global research I’ve done under the remit of the INSEAD Corporate Governance Centre, together with colleagues from BCG and Heidrick & Struggles.

 …