Board leadership in the eye of the storm

Barbara Kux is a highly experienced business leader and board member with a focus on corporate governance and sustainability. In a conversation with Prof. Dr. Reto Eberle, she explains why – especially in the current climate – boards of directors need to focus on opportunities, what makes diversity in the boardroom so crucial and how artificial intelligence and sustainability are influencing corporate governance.

Below you will find some selected questions from the interview. Download the PDF to read the full interview. We wish you a thought-provoking read.

Reto Eberle: Ms. Kux, as a business leader with international experience, you are familiar with both the operational and strategic sides of leadership. What are the hallmarks of good governance in practice? Based on your own experience, which aspects do you consider key?

Barbara Kux: We are living in a time of interconnected crises – political, economic, environmental and social. But every polycrisis also presents polyopportunities: growing markets in Asia, Latin America and Africa, and the rise of the middle class in those regions; new technologies such as AI or green tech; an ageing population. Peter F. Drucker once aptly said: “The greatest danger in times of turbulence is not the turbulence; it is to act with yesterday’s logic.” For boards of directors, this means analyzing risks and opportunities holistically, exploring scenarios and safeguarding resilience. I experienced this at Siemens in 2011 during the Fukushima crisis, which had a sudden and massive impact on global supply chains. Thanks to transparency regarding alternative procurement options and our decentralized decision-making powers, we were able to react quickly and avoid production downtime. This helped instill confidence and trust among our people, even in a crisis.

You have been involved with sustainability for a long time. Are there differences between economic regions such as Europe, America, China or India in the way the topic is perceived?

Yes, very much so. Sustainability is most firmly embedded in Europe. In growing economies such as India, China and Africa, the focus is initially on basic needs such as food, housing and education. Companies operating in these markets need to actively communicate to their suppliers why sustainability matters to customers. We deliberately provided training on the topic in China, for example. It is important not to view sustainability as internal bureaucracy, but as a business opportunity. At Philips, we focused on green lighting, at Siemens on green tech, and even at TotalEnergies we developed new areas such as solar, batteries and green fuel. Sustainability opens up market potential in every company, from impact investing in the banking sector to new industrial business models. It also motivates employees because they see that they are contributing to something with a future focus. Of course, it is also important to adopt a consistent approach within the company, from energy management and supply chains to the optimization of all business processes.

Digitalization and AI raise fears, but also offer enormous opportunities. How should Europe position itself in these areas – especially with regard to AI and green tech – among global competitors?

Green tech is a huge growth market. In 2024, the global market size was valued at around USD 20 billion, and by 2032 it is expected to exceed USD 100 billion. Virtually every sector – from building technology to industry and mobility – can participate. Europe is a leader in this field, and this is a major opportunity for us: we can expand our business while reducing CO2 emissions. AI also opens up enormous potential. It helps to make processes more efficient and sustainable and enables us to achieve more with less. One example is a start-up with digital twins for the automotive industry. Entire production chains can be optimized virtually. Such applications accelerate innovation, improve customer contact and increase competitiveness.

Every company – and every board – must actively seize these opportunities. At the same time, clear rules – ideally at the European level – are needed for data protection, privacy rights and corporate security.