Why boards must prioritise STEMM skills for strategic growth

Board composition should prioritise STEMM competencies alongside governance and financial acumen, writes Natalie Chapman GAICD, director at Women in STEMM Australia.

Australian companies, regardless of their sector, must urgently rebalance their boards to include directors with STEMM (science, technology, engineering, mathematics and medicine) expertise. We are living through a period of accelerating global disruption — from AI and quantum to climate change and energy insecurity. These disruptive and often underestimated forces challenge governments, with boards and businesses — including mine — pushing leaders to adapt at an overwhelming pace. In this environment, boards that embrace innovation won’t just manage risk more effectively, they’ll future-proof their organisations, unlocking powerful new opportunities for growth.

Proof it works

Globally, companies like Apple, Amazon, Nestlé and Nvidia have shown how innovation drives profitability and resilience. These organisations maintain strong STEMM representation at board level and consistently invest in research and development. In Australia, high-performing companies such as CSL, ResMed and Wesfarmers are doing the same, blending technological investment with sound governance in order to deliver shareholder value.

Mind the gap

There has been some progress. My research shows that 28 per cent of ASX 100 directors have STEMM backgrounds, mostly in health, mining, energy and materials processing companies. But only two per cent have an IT background, despite AI, quantum computing and cybersecurity being among our biggest challenges. And less than 10 per cent of those with STEMM credentials are women.

A new balance

To thrive in this fast-evolving landscape, boards need to pivot. Following the global financial crisis, board recruitment focused heavily on governance, risk and compliance. But the new normal demands more. It’s time to complement financial and legal acumen with STEMM expertise to navigate increasingly complex risks and seize new opportunities.

STEMM brings insight

STEMM professionals think differently. They combine their evidence-based approaches, critical thinking and technical training to help the board better understand the complex environment and offer practical advice and solutions. To be effective at the board level, they must also bring business acumen — enabling them to translate fast-moving developments, such as AI-accelerated science creating new materials and medicines, into clear strategic insights that inform commercial decisions.

When COVID-19 emerged in China, I advised businesses to diversify supply chains, reassess work models and implement business continuity plans early. Those that acted quickly avoided major disruption. Today, governments prioritise sovereign capability and resilience, but agile companies have already adapted in real time.

Startups need it too

This shift is especially important for startups growing out of Australia’s innovation ecosystem. These businesses often start with investor-led, STEMM-heavy boards. However, as they scale, their governance requirements increase, making it vital to balance technical, commercial and regulatory expertise. These are the ASX leaders of tomorrow and they need the right foundations.

Act now

In a world shaped by science and technology, boards must be equipped to make fast, informed decisions on global risks and opportunities. That starts with having the right minds around the boardroom table. Don’t wait for the next disruption to realise the gap. Rebalancing with STEMM capability is no longer optional — it’s a strategic imperative. The organisations that act now won’t just survive, they will define what comes next.

This article first appeared under the headline 'Opinion' in the September 2025 issue of Company Director magazine.