Sustainability reporting: What directors need to know and do

The document outlines the transition of sustainability issues into material financial risks and opportunities, urging board members to act now due to the speed of regulatory change and evolving stakeholder expectations. It highlights the necessity of internal capacity-building and provides a framework of questions for directors to assess governance, risk management, and strategic implications.

• Sustainability and climate change have transitioned from non-financial considerations to material financial risks and opportunities that impact both real economies and financial systems.
• Directors face a significant shift in reporting practices driven by various global and regional frameworks, including the International Sustainability Standards Board Standards, the EU's Corporate Sustainability Reporting Directive, the US SEC's proposed Climate Disclosure Rule, and California's Senate Bill 261.
• There are three primary drivers for immediate board action: the rapid scale of regulatory change (with mandates often starting within two financial years), the potential for director liability regarding the oversight of financial disclosures and transition plans, and the need to meet the expectations of shareholders, lenders, and customers to reduce the cost of capital.
• To prepare for these changes, board members should focus on three areas: assessing governance and capacity (including assurance readiness), overseeing the uplift of internal risk management and information systems, and evaluating the implications for business strategy and materiality thresholds across the value chain.

APA

Barker, S., & Learmount, S. (2024). Sustainability reporting: What directors need to know and do. World Economic Forum. https://www.weforum.org/stories/climate-action/sustainability-reporting-what-directors-need-to-know-and-do/

Chicago

Barker, Sarah, and Simon Learmount. Sustainability reporting: What directors need to know and do. World Economic Forum, 2024. https://www.weforum.org/stories/climate-action/sustainability-reporting-what-directors-need-to-know-and-do/.

Wikipedia

{{cite report |last1=Barker |first1=Sarah |last2=Learmount |first2=Simon |title=Sustainability reporting: What directors need to know and do |publisher=World Economic Forum |date=13 May 2024 |url=https://www.weforum.org/stories/climate-action/sustainability-reporting-what-directors-need-to-know-and-do/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{barker2024sustainability, author = {Barker, Sarah and Learmount, Simon}, title = {{Sustainability reporting: What directors need to know and do}}, institution = {World Economic Forum}, year = {2024}, month = may, url = {https://www.weforum.org/stories/climate-action/sustainability-reporting-what-directors-need-to-know-and-do/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }