For CFOs and CEOs of global organisations, sustainability is no longer optional. Even amidst regulatory resistance in Europe, the underlying risks and expectations remain urgent. A recent Financial Times feature highlighted how measures such as the Corporate Sustainability Due Diligence Directive (CSDDD) and the Green Claims Directive are being diluted. Yet, simultaneously, a €6.6 trillion investor coalition has warned that relaxing sustainability disclosure rules risks destabilising markets and eroding investor confidence. 

The contradiction is stark: while some policymakers roll back, capital markets, employees, and customers continue to raise the bar. Weakening regulation does not lessen climate risk, supply chain disruption, or reputational pressure, it only increases the volatility of the environment in which businesses operate. 

And yet, in many organisations, sustainability is still entrusted to thinly spread teams, often just a handful of individuals expected to manage compliance, disclosure, risk, and transformation simultaneously. For boards, this is not an HR issue. It is a governance gap that can erode value faster than any regulatory fine. 

When expectation outpaces capacity 

The State of the Profession Report 2025 shows that over 40% of sustainability professionals have seen their remit balloon, covering decarbonisation, compliance, and strategy, without corresponding increases in headcount or budget. Only one in four companies invests in training, and fewer than half measure Scope 3 emissions effectively. 

This imbalance between ambition and delivery is a red flag for finance leaders. Commitment without capacity does not equal progress, it creates reputational risk, regulatory exposure, and operational fragility. 

The fragility of thinly spread teams 

Some CEOs are already facing this challenge. At Unilever, Hein Schumacher has shifted to a more “realistic sustainability” strategy, lowering targets to ensure credibility and achievability. At Siemens Energy, CEO Christian Bruch warned that the EU’s CSRD might be “overshooting” by demanding thousands of data points per company. His message was clear: without adequate resourcing, even the best-intentioned regulation risks damaging competitiveness. 

These cases reveal a wider truth: overstretched sustainability teams create the illusion of progress but rarely the substance. Without investment in systems, skills, and governance, sustainability risks becoming a compliance exercise rather than a driver of value. 

Why boards undervalue sustainability

Part of the issue lies in human behaviour. Decades of behavioural economics show that boards are often “present-biased”, overvaluing immediate financial returns and undervaluing long-term, systemic benefits. Psychologists call this temporal discounting. 

Robert Eccles has described this as a governance blind spot: boards prefer what can be easily priced or measured now, while undervaluing risks that may surface later. But in today’s economy, ignoring sustainability is no longer prudent caution. It is fiduciary negligence. 

As Simply Sustainable founder and Chief Impact Officer Nicola Stopps puts it: 

“Corporate sustainability is not about compliance or reputation management, it is about commercial value creation. Done well, it drives innovation, reduces risk, unlocks investor confidence, and positions companies to outperform in markets defined by transition.” 

Lessons from transformation:  

This is familiar territory. As finance functions became strategic business partners, boards invested in governance, technology, and enterprise-wide systems. When cybersecurity emerged as an existential risk, leadership did not rely on a small team, they professionalised and scaled. 

The same approach must now apply to sustainability. At Maersk, for example, finance became a value-creating partner by embedding shared systems and real-time analytics across the organisation. Sustainability needs to follow the same trajectory: from marginal reporting to a driver of capital allocation and competitive advantage. 

Risks of under-resourcing 

For CFOs and CEOs, overstretched sustainability teams create direct business risks: 

• Reputational risk – unmet pledges invite accusations of greenwashing. 

• Regulatory risk – weak compliance exposes companies to fines and litigation. 

• Operational risk – unmanaged climate and supply chain risks disrupt continuity. 

• Capital markets risk – poor disclosure drives up cost of capital and erodes investor trust. 

From overstretched teams to strategic functions:  

The profession is already evolving: 

1. From compliance to strategy – sustainability leaders are shaping business transformation, not just reporting on it. 
2. From generalist to specialist – roles like carbon accountants and ESG data analysts are becoming essential. 
3. From silo to integration – sustainability is increasingly embedded across finance, risk, procurement and more. 

For boards, these shifts are not optional. They are essential foundations for resilience and credibility. 

What CFOs and CEOs should do next 

To close the gap between ambition and delivery, boards must: 

• Resource sustainability proportionately to ambition. 

• Make sustainability a standing item in governance and board agendas. 

• Tie sustainability to capital allocation and investment priorities. 

• Invest in specialist roles and external advisors with deep expertise. 

• Reframe sustainability as long-term value creation, not cost. 

Conclusion: From liability to leadership 

Under-resourced sustainability teams are not a saving; they are a liability. Behavioural bias tempts leaders to value the immediate and financial, while undervaluing systemic risks. But in a world shaped by climate disruption, transition pressures, and investor scrutiny, that bias is itself a strategic vulnerability. 

Boards that continue to underinvest will find themselves exposed. Those that act differently (scaling capability, embedding sustainability into governance, and partnering with trusted external experts) will build resilience, unlock investor confidence, and secure competitive advantage. 

Sustainability is no longer a communications exercise. It is a commercial discipline of value creation. 

To understand more, contact our Chief Impact Officer and Founder, Nicola Stopps here.