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Analysis of the need for continuous board updates on sustainability

Writer's picture: Sylvain Richer de ForgesSylvain Richer de Forges

Boards need to do more than receive a once-a-year update on sustainability. Why?




 Because sustainability issues are dynamic and can significantly impact long-term business resilience. 



According to a 2022 PwC study, 88% of institutional investors said that companies that prioritize ESG are better long-term investments. Sustainability is now essential to risk management and opportunity identification—not just a check-in box on a yearly agenda.



Ongoing board involvement ensures that sustainability is integrated into core decision-making, rather than being sidelined as an afterthought. A Harvard Business Review study revealed that companies with proactive sustainability governance had 18% higher shareholder returns over a 10-year period than those without.



Additionally, regulatory pressure is growing. The EU’s Corporate Sustainability Reporting Directive (CSRD) requires detailed, frequent disclosures, with penalties for non-compliance. Waiting until year-end puts companies at risk of falling behind these evolving standards.



Companies should establish quarterly sustainability reviews to ensure strategic alignment and responsiveness to risks such as climate change, supply chain disruptions, and stakeholder demands. McKinsey reports that businesses with integrated sustainability strategies see 20% higher operational efficiencies and 16% higher profit margins.



Boards that lead on sustainability aren’t just managing risk—they're building a future-ready business.


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