Directors Quarterly: July 2025

As companies continue to respond to the impact of continuing tariff turbulence, a sweeping domestic policy bill in the Unites States, ongoing geopolitical risk, and expected slower global growth, boards must help management teams stay focused on the long term amid lingering uncertainty and low visibility. Keeping strategy at the top of the board agenda remains imperative.

In this edition, we offer observations for boards to consider as they calibrate their agendas for the remainder of the year, as well as insights from directors and business leaders on how to help management teams stay focused on the future.

As use of artificial intelligence in all its forms continues to rise, we also look at the adoption and trust of artificial intelligence around the globe based on findings from a survey of more than 48,000 people in 47 countries by KPMG International and the University of Melbourne. We provide highlights from the results of the 2025 proxy season that directors may find helpful as they prepare for shareholder engagement in the months ahead.

For audit committee members, we offer an update on recent financial reporting developments that may impact companies in the near term, including the potential impact of US tariffs on financial statements, updates from the US Securities and Exchange Commission, and the latest on sustainability reporting. We also offer takeaways from our latest survey of audit committee members and chairs about the challenges and concerns impacting committee agendas in 2025.