FOLLOWING the global financial crisis 15 years ago, many countries around the world began paying greater attention to sustainability and the interests of a broader group of stakeholders. By around the mid 2010s, sustainability reporting requirements for listed companies had been introduced in many countries. Nevertheless, these developments have occurred largely separately from reforms of corporate governance rules, although some principles and guidelines on sustainability started appearing in corporate governance codes.

Today, boards have a key role to play in guiding companies on their sustainability journey and should ensure that existing policies and practices at the board level and throughout the company are aligned with the focus on sustainability and the wider interests of stakeholders.

The sustainability reporting standard IFRS S1 issued by the International Sustainability Standards Board states that companies shall disclose “the governance body(s) (which can include a board, committee or equivalent body charged with governance) or individual(s) responsible for oversight of sustainability-related risks and opportunities” and specifically “how responsibilities for sustainability-related risks and opportunities are reflected in the terms of reference, mandates, role descriptions and other related policies applicable to that body(s) or individual(s)”.