Changing minds, changing outcomes

Directors are often focused on strategy, oversight and risk. But for organisations to succeed in delivering climate action, boards must also consider people – the mindsets, behaviours and systems that shape how change happens.

The science is clear: technology and policy alone will not get us to net zero. Human behaviour – at individual, organisational and societal levels – is critical. Despite this, behavioural dimensions remain underused in climate governance. For directors, this presents both a gap and an opportunity.

The 2025 Ipsos People and Climate Change report found that while New Zealanders remain concerned about climate change, there is a growing sense of fatigue and frustration.

Only 31% of respondents think businesses are doing enough, and nearly half felt their individual efforts were undermined by a lack of meaningful action from government and business. Moreover, many respondents perceived climate change as an issue still viewed through a compliance lens rather than one of leadership or opportunity.

This reflects a trust and credibility gap that directors cannot ignore. Boards must take visible, strategic action: embedding climate goals into core purpose, signalling alignment from the top, and engaging transparently with stakeholders. To retain social licence and drive long-term impact, leadership must move from transactional to transformational.

Epitomised by the ‘think global, act local’ campaign, too often behaviour change is framed as an individual responsibility: take the bus, eat less meat, switch to LEDs. But for directors, the real work lies in understanding how organisational behaviour is shaped by leadership, culture, incentives and systems.

Veterinarian Olivia Buckley’s 2024 research on climate action in the farming sector shows this clearly. Farmers were more likely to change their practices when they had visible leadership support, clear incentives and peer examples.

Those with a growth mindset who believed change was possible were more open to adaptation. But mindset alone wasn’t enough. Supportive systems and structures made change easier, and a lack of them made it harder.

The same applies in governance settings. Where leadership was present and engaged – backing change, funding pilot projects and celebrating progress – uptake improved. Conversely, where support was reactive or inconsistent, progress faltered.

Directors have a critical role in ensuring CEOs and senior leaders are not just executing strategy but actively championing it in how they lead, communicate and allocate resources.

Incentives also matter. As technical support helped farmers implement emissions reductions, boards must ensure incentive structures support climate strategies. This means looking beyond executive KPIs to consider what gets rewarded across the organisation – both formally and informally.

A good example is Fonterra’s newly announced incentive scheme for low-emissions farming. It aligns individual farm decisions with the broader sustainability goals, reinforcing that climate action is a shared strategic priority.

Systems, too, play a decisive role. Buckley’s research found farmers faced difficulties when supply chain expectations didn’t shift alongside new climate targets. The same can occur in any organisation where reporting, procurement and budgeting systems reinforce outdated behaviours, despite strategic commitments to change. Boards should ensure systems align with the behaviours they want to see, from how decisions are made to how success is measured.

Visibility and peer influence are also powerful drivers of change. Farmers in Buckley’s study often looked to neighbours or local collectives who had already acted. Within organisations, directors can encourage their teams to share stories of experimentation, adaptation and success.

Directors don’t need to be behaviour change experts, but they do need to understand the levers within their influence. Governance helps shape the culture of an organisation: what gets prioritised, what gets permission and what gets funded. If climate goals are to be delivered culture, not just compliance, must be aligned.

Behaviour change is not a communications issue. It is a governance issue. Boards that invest in aligning leadership, incentives and systems are better placed to ensure climate strategies don’t sit on the shelf – they become how the organisation works.

Takeaways for directors:

• What behaviours need to change – and what’s getting in the way?
• Are leadership, incentives and processes supporting or undermining climate action?
• Stories, examples and champions build momentum and trust
• Does organisational culture encourage experimentation and continuous improvement, or reinforce the status quo?
• Are outdated beliefs about what motivates people or how fast change can happen influencing governance?
• Training, peer networks and capacity-building help make new behaviours stick
• Ensure climate impact and transition planning are woven into strategic discussions, not relegated to separate reports

Governance is a powerful lever for culture and change. It’s time directors used it not just to oversee climate progress, but to enable it.

The IoD & Chapter Zero NZ 2025 Climate Forum will be held in Auckland on 28 July. Go here to register.