European Board Stewardship and Human Capital Governance Survey findings

Board Stewardship and Human Capital Governance Survey

European Findings' from WTW’s 2025 survey. It highlights key concerns and priorities for European boards. Boards are focused on both immediate threats and long-term risks, with financial performance monitoring and reporting being top concerns. However, innovation, AI, and human capital require more attention.

The top five aspects keeping boards awake at night include:

• Geopolitics and changing trade patterns
• Cybersecurity and data governance
• Economic downturn and business outlook
• AI and business model disruptions
• Climate risk and transition to net zero

Boards currently spend the most time on:

• Financial performance monitoring and reporting
• Purpose and strategy
• Enterprise risk management
• Regulatory compliance

Areas needing more attention include:

• Purpose and strategy
• Innovation and transformation
• Human capital
• AI and cybersecurity

Directors report a shift in material business topics and fiduciary duties, emphasizing the need to focus more on innovation, leadership succession, AI, and cybersecurity. While current concerns reflect global affairs, topics like AI and climate change are also top of mind.

Boards are most influenced by business strategy alignment, long-term value creation, and ethical reasons when setting ESG priorities. This marks a shift from compliance to strategic and commercial ESG decision-making.

Of ESG factors:

• 67% cite alignment with business strategy
• 85% are confident in governance (ethics and reporting)
• 28% are least confident in nature and biodiversity
• 78% cite long-term value creation
• 74% cite moral and ethical reasons
• 77% of board directors agree it is part of their stewardship role to influence system-wide change on climate, resource depletion, and biodiversity loss.

Human Capital Governance: Despite being top priorities, only one-third of boards are confident in their oversight and reporting on workforce issues. Key human capital priorities include:

• Leadership succession and development
• Talent attraction and retention
• Workforce planning and future skills

Confidence levels:

• 36% have robust processes to identify and monitor human capital risks
• 57% say reports provide enough context for strategic discussion
• 41% have holistic and strategic human capital discussions at board level
• Boards lack confidence in processes, reporting, and strategic dialogue around people issues. There is a disconnect between priorities and time allocation, with leadership succession, talent attraction, and workforce planning needing more attention.
• 60% feel confident in board expertise on human capital.
• 57% believe human capital governance should be the responsibility of the full board, not just the remuneration committee.

Source: Board Stewardship and Human Capital Governance Survey: 2025 European findings