As sustainability risks become increasingly tied to business resilience, boards are under growing pressure to lead with clarity and foresight.

Over the past decade, frameworks such as the Task Force on Climate-related Financial Disclosures (TCFD), the EU’s Corporate Sustainability Reporting Directive (CSRD), and the International Sustainability Standards Board (ISSB) have shaped how organisations approach sustainability. While each varies in scope and application, they share one essential theme: the centrality of governance and board-level oversight.

Boards have a pivotal role to play. Not only in complying with regulatory expectations, but in setting long-term direction, building resilience, and enabling more informed and accountable decision-making in an increasingly complex business environment.

Building resilience through sustainability oversight

The risks and opportunities associated with sustainability are no longer peripheral. From extreme weather events and biodiversity loss to workforce practices and social inequality, ESG factors now affect everything from cost structures and supply chains to capital planning and reputation.

In this context, board-level engagement with sustainability is not just a regulatory requirement. It is a critical lever for strengthening long-term decision-making, risk oversight and organisational resilience.

Yet many boards are still developing the fluency needed to engage effectively. A 2024 Reuters analysis found that only around 2% of Fortune 500 boards in the US and Europe currently have the expertise required to guide their organisations on sustainability risk and strategy.

This is not about turning directors into technical experts. It’s about equipping boards with the confidence and tools to ask the right questions, challenge assumptions, and make informed decisions that embed sustainability into long-term business thinking.

At Simply Sustainable, we work with boards and senior leaders to do just that. Our tailored support builds the knowledge and capabilities needed to oversee both climate-specific and broader ESG issues, ensuring that sustainability is embedded into governance, risk and strategic decision-making from the top.

Regulatory uncertainty  doesn’t diminish the case of action

In recent months, there has been a visible softening of regulatory momentum in some jurisdictions. In the EU, implementation of CSRD has been delayed under the “stop-the-clock” Omnibus Directive. In the US, the SEC voted in March 2025 to withdraw its defence of the 2024 climate disclosure rules, effectively pausing implementation. In the UK, formal alignment with ISSB standards remains expected, but no official timeline has been announced.

While these shifts may ease near-term reporting pressures, they reflect adjustments in timing — not direction. The broader trend remains unchanged: towards greater transparency, more robust governance, and deeper integration of sustainability into strategy and operations.

In this evolving environment, businesses should resist the temptation to deprioritise sustainability. On the contrary, this is the moment to strengthen internal capability — and reinforce governance structures that can deliver long-term value.

Boards have a lasting role to play

Strong board-level oversight of sustainability supports more than regulatory compliance. Aligning with frameworks such as TCFD, CSRD and the IFRS Sustainability Disclosure Standards provides a consistent and strategic foundation for embedding sustainability into governance and decision-making. It helps boards clarify responsibilities, assess ESG risks and opportunities systematically, and align sustainability priorities with long-term organisational goals.

At Simply Sustainable, we support boards through in-depth workshops and advisory services that translate identified ESG risks into meaningful business context. Our approach helps boards implement governance measures that not only mitigate risk but unlock long-term value.

To understand more, contact our ESG Consultant – Risk, Reporting and Communications, Kate Dowling here.