Most boardrooms around the world are unified over sustainability, but there is a lack of confidence between CEOs and board members over each other’s ability to deal with the current business climate.

The results of a new survey, conducted with board members across the globe, have convinced researchers that a new forward-looking form of governance is emerging. The research finds that 77% of boards believe their company has a responsibility to address sustainability concerns.

Meanwhile, boardrooms have become a location for tension: 29% of directors lack faith in their CEOs to navigate the current era of uncertainty, while 26% of chief executives report similar scepticism over their boards’ effectiveness.

Artificial intelligence is another point of uneasiness. Only 36% of those questioned felt prepared to apply the potential of AI.

The research—conducted by headhunters Heidrick & Struggles, Boston Consulting Group (BCG) and INSEAD Corporate Governance Centre—took the views of 444 directors and executives around the world and concludes that the “current reality makes the role of directors more challenging than ever”.

Boards are confronting the demands of climate change, geopolitical uncertainty and the impact of disruptive technology, including AI.

According to Jeremy Hanson, a partner at Heidrick and co-author of the report, soothing tensions or “alignment” between senior executives and board members is a priority.

“Importantly, alignment does not mean boards should shy away from constructive debate with management,” says Hanson. “In fact, fostering open, even difficult, conversation is crucial for boards to reach resilient, well-rounded decisions in today’s demanding environment.”

Researchers conclude that a new form of governance is emerging—one that places as much emphasis on looking ahead as on looking back at performance, reporting and compliance.

Enhancing risk management, reviewing governance structures and increasing scenario planning are the top governance processes in play for confronting sustainability, GenAI and geopolitics.

The report says respondents in the research revealed a need to “transition from traditional models that primarily emphasise a rearview mirror approach focused on performance and compliance monitoring to a more dynamic approach that stresses forward-looking strategies and adaptability”.

Sonia Tatar, executive director of INSEAD, says: “Boards today can benefit from moving from being reactive to proactive. Beyond understanding disruptions, they can focus on looking ahead—anticipating future shocks and potential risks and finding ways to capitalise on the emerging trends to leverage opportunities.”

David Young, senior partner of BCG, says boards are facing an increasingly complex world. “But boards have made notable progress in tackling sustainability—and now there is an opportunity for them to learn from these efforts as they engage in deep conversations with executive leadership to confront this expanding agenda.”