From the Boardroom to the Frontlines: Why Directors Must Act on Climate Now!

Southeast Asia is already experiencing the impacts of climate change, from devastating floods to extreme heat and rising sea levels. These are not future concerns. They are here, now. And how companies respond today will shape their ability to survive and thrive in the years ahead.

Businesses in the region face growing exposure to climate-related disruptions. From supply chain shocks and damaged assets to shifting regulations and investor demands, the risks are broad and material. At the same time, these businesses hold significant influence in shaping the region’s climate response and that influence starts at the top.

Boards Hold the Power to Lead

Board directors are uniquely placed to steer their companies through the climate transition. As stewards of long-term corporate strategy, their decisions determine whether climate risk is treated as a strategic imperative or a side issue. It can no longer be the latter.

Climate change is not just a sustainability concern, it is a fundamental issue of governance, legal responsibility, and financial oversight. And yet, many companies in Southeast Asia still struggle to translate climate ambition into board-level action. While awareness is growing, few boards have embedded climate considerations into their governance frameworks or strategic planning processes.

Inaction Carries Consequences

Boards that fail to take action face increasing legal, financial, and reputational risks. Regulators and investors are applying greater scrutiny to climate disclosures and net-zero commitments. Where there is a gap between what companies promise and what they deliver, the consequences are mounting.

Globally, legal action against companies and directors is on the rise, particularly in cases involving weak or misleading climate disclosures. Greenwashing is no longer just a PR issue, it may expose directors to regulatory investigations and claims for breach of fiduciary duty. In today’s environment, silence or inaction on climate risks is a risk in itself.

Expectations are shifting. Boards are now expected not only to understand climate-related risks and opportunities, but also to lead their companies in developing credible, science-aligned transition plans.

So What Can Boards Do?

Board directors do not need to be climate experts, but they must ensure climate is on the agenda - consistently and strategically. Here are three actions boards in Southeast Asia can take immediately:

Learn

Gain a clear understanding of climate-related risks, regulatory developments, and your fiduciary responsibilities as a director.

Review

Examine how climate issues are addressed in your current governance structure. Do you have the right board-level oversight, skills, and systems in place?

Act

Use the Guide on Climate Action for Boards in Southeast Asia as a practical roadmap to integrate climate considerations into business strategy, risk management, and disclosures.

Boards that take climate action seriously today will be better positioned to lead with confidence and credibility in a rapidly changing world. Those that don’t risk falling behind or facing consequences that could have been avoided.

Download the full guide here.