Corporate governance is undergoing a transformative shift to address the escalating risks posed by climate change. Traditional governance frameworks, historically focused on shareholder value and short-term financial performance, are increasingly giving way to models that integrate Environmental, Social, and Governance (ESG) considerations. This chapter examines the evolution of governance practices, highlighting key challenges, including the tension between short-term financial goals and long-term climate responsibilities, gaps in board expertise, and misaligned incentive structures. It explores innovative approaches such as science-based targets, enhanced climate risk reporting, and the integration of digital technologies like AI and blockchain to improve transparency and accountability. Through case studies and analyses, including the ExxonMobil-CalPERS conflict, this chapter underscores the necessity for proactive governance reforms. It emphasizes the critical role of board diversity, director agency, and cultural shifts in fostering sustainability at every level of corporate strategy and operations. Additionally, it highlights future trends, including advancements in renewable energy, regulatory developments, and the rise of Chief Sustainability Officers (CSOs). In conclusion, the chapter argues that integrating sustainability into governance is essential for long-term corporate resilience and success. By addressing climate risks head-on, companies can build trust, ensure compliance, and capitalize on emerging opportunities, positioning themselves as leaders in a sustainable global economy.