Increasingly ESG considerations are backed by hard data, putting even more pressure on boardrooms to act. For instance, the Workplace Gender Equality Agency (WGEA) reveals that despite progress, the gender pay gap remains at 21.7 per cent, highlighting the need for continued efforts to achieve equality.

New technologies such as AI and machine learning are creating new categories of ethical risk that boards will also need to manage.

“Balancing innovation and ethics when implementing technology should be a fundamental part of an organisation’s risk management framework. Companies must commit to using new technologies in a lawful, ethical and responsible manner,” says Motto.

“For instance, when deploying AI, transparency, accountability, and fairness are paramount. We should also consider the human impact of automated decisions and adopt clear ethical principles.”

David Simmonds, chief strategy, sustainability & governance officer, CLP Holdings Limited (Hong Kong), says that boards no longer view sustainability issues as merely an adjunct to running a profitable company.

“Sustainability efforts will fail if they are viewed through a compliance lens or as a bolt-on to the main business. Sustainability has to be embedded within the business and be at the core of strategy,” Simmonds says.

“To become integrated into core governance begins with orientating the business and its governance frameworks around the objective of value creation over the long-term, not just the next quarterly earnings figure.”

The biggest challenge to effective governance going forward, he adds, will be the sheer pace of change.

“Nature, biodiversity, human rights, supply chain management and human capital are just some of the areas that will be affected by this rapid change and require careful management,” he says.

“Governance leaders will need to ensure sufficient pace, poise and agility in their governance processes to navigate away from the risks and towards the opportunities that arise in this period of rapid change.”

By providing education, resources, and a platform for dialogue, the Governance Institute of Australia plays a central role in shaping and promoting these governance frameworks, supporting governance professionals in addressing contemporary challenges.

Its upcoming 2024 International Governance Leadership Conference, scheduled for September 4-5 in Melbourne, provides a vital forum to discuss these pressing issues, bringing together expert national and international speakers to explore themes centred on the human condition.

This deeper examination of the governance implications of socioeconomic factors, environmental challenges, geopolitical tensions, and technological transformations aims to provide professionals with the essential tools for developing effective governance solutions for the future.

Ultimately, says Simmonds, future-proofing any organisation against global crises will hinge – not just on the corporate roulette of managing risk when it occurs – but on good governance frameworks that provide a solid ethical foundation for moving forwards.

“Frameworks which are principles-based rather than rules-based, and which orientate around the objective of long-term value creation are likely to be more resilient,” he says.

“We don’t know what the next global crisis will be but organisations and governance frameworks that direct attention and effort towards identifying and understanding longer term threats and opportunities, and that encourage and reward trade-offs that support long term value creation, will be the most resilient to future crises.”

To learn more, or to attend the International Governance Leadership Conference on September 4-5, please visit the Governance Institute of Australia.