New research suggests boards need to embolden management and embed sustainability into business decisions in order to boost impact.
The survey from EY on long-term value and corporate governance honed in on the responsibility of board members to encourage sustainable decision making within businesses and inspire commitment to green growth during a time when dedication to sustainability is cooling.
Drawing on the views and opinions of 200 directors, chief executives and c-suite leaders, the research implies board members are better placed to tie sustainability into long-term vision for businesses and hold the key to accelerating environmental progress, particularly when all staff are engaged in the process and vision.
Further research conducted by EY in 2023 suggested sustainability momentum is slowing, with the median target year for achieving climate ambitions set to 2050 among businesses, compared to 2036 in 2022. However, sustainability remains a key consideration among investors, with 56 per cent citing “climate change and environmental stewardship” as a top board priority in 2024.
A gap in confidence
According to the survey, 63 per cent of C-suite executives believe they have a highly effective approach to values and culture, which drops to just 40 per cent among non-executive directors and chairs. A similar gap exists when asked about confidence in company training, and commitment to sustainability.
This highlights a significant gap in confidence and engagement with corporate policies, values and vision. Organisations that put people at the center of their transformation efforts and goals are 2.6 times more likely to be successful than those who do not, meaning a board focus on genuinely engaging employees with sustainability goals and effectively communicating the decision-making progress is more likely to produce better, more impactful results.
The report highlights a series of key questions for boards to develop strategic vision and sustainability integration:
- How can we actively revise our business strategy to incorporate sustainability at its core?
- What specific steps need to be taken to ensure our leadership champions and drives sustainability?
- What could we do to engage staff with our sustainability narrative and efforts?
- What approach needs to be taken for both short-term and long-term sustainable growth?
- What skills and capabilities do we need to achieve our green goals?
- How can we cultivate a company-wide culture of sustainability?
By asking your board members these questions, organisations can develop more meaningful and impactful sustainability policies with a higher chance of delivery and success.
