When it comes to sustainability-related information, board readiness is shockingly low. Research by the Association of Chartered Certified Accountants (ACCA) shows that only 16% of boards are engaging in the sustainability-related discussions they need to have. Put bluntly, most leadership teams are flying blind.

Too many organisations are not receiving early warning signals about emerging risks—and, without those signals, they cannot support organisational resilience. Forget future profitability for a moment: many boards are not even sufficiently alert to the risks affecting their businesses today.

The sustainability agenda is broad—geopolitics and geo-economics can translate into impact on the natural world and climate and, in turn, communities’ access to resources and then to an organisation’s ability to operate, adapt and survive.

This is number one in the business case to move beyond mere compliance with sustainability-related regulation.

Beyond compliance

As of November 2025, 40 jurisdictions are on their journey to adopt the International Sustainability Standards Board (ISSB) requirements. That’s to be applauded. But for organisations in jurisdictions without such requirements to think ‘that’s not my problem’¬—well, that logic is dangerously short-term.

More than 1,000 respondents from 113 jurisdictions were surveyed as part of ACCA’s report, Sustainability reporting: Track your progress. Far too many respondents—71%—placed regulatory compliance among their top reasons for creating or using sustainability information, suggesting that if regulations did not require it, they would not prioritise it.

Yet resilience and the ability to generate sustainable profits have little to do with whether a regulator has mandated a disclosure. If organisations wait for regulation before taking sustainability seriously, the risk is simple: they may not be around by the time the rules arrive.

Gaining understanding

Leaders championing sustainability recognise that sustainability information and reporting, when connected to business and finance, is a strategic asset. They are using interconnected information to holistically understand their businesses. This helps them develop and implement robust strategies and business models, and better manage risk with strengthened continuity and contingency planning. These leaders also empower all, but especially finance teams, to create and use this interconnected sustainability information. Consequently, such organisations are well placed to withstand the economic, geopolitical and climate-related shocks that are becoming the new norm.

Global sustainability regulations are expanding quickly, from the European Union’s Corporate Sustainability Reporting Directive to International Sustainability Standards Board-aligned requirements. And while some jurisdictions may be seen to be rowing back on some of their green commitments, this shift is a red herring: the underlying risks—from floods to tornadoes disrupting economies and supply chains—are not receding.

Adopting globally relevant sustainability standards delivers consistency, comparability and credibility—the cornerstones of good corporate reporting. Once a global baseline is in place, sector- or jurisdiction-specific requirements can be layered without creating fragmentation or duplication.

Often working with professional bodies (including ACCA), policymakers and regulators are increasingly providing support to implement materials and guidance to help advance and strengthen the sustainability reporting ecosystem. When organisations use these tools, the cost and burden of reporting can fall, and the quality of disclosures rise. The message is clear: regulation, when properly leveraged, supports effectiveness, not bureaucracy.

That said, sustainability reporting is only as strong as the data that underpins it, which requires organisations to genuinely understand their business end to end. Leaders should be asking themselves a fundamental question: have we truly begun generating decision-useful information? For many organisations, the answer is still no.

Dig deeper

Life-cycle analysis and a deeper appreciation of resource dependencies—who provides what, with what risks and alternatives—help organisations uncover vulnerabilities and opportunities that would otherwise remain hidden.

Bringing sustainability into relationship management, especially in supply chains, is essential. Structured engagement with suppliers on ESG issues helps reduce risks, ensure continuity and build shared value. SMEs may excel at relationship management but often do not anticipate regulatory pressures from their value chain until the last moment. They also frequently overlook the free or low-cost support that regulators provide.

Good sustainability reporting also depends on effective information flows between customer-relationship systems, finance functions and sustainability teams. Agile systems built around end users ensure information is not only available but also coherent across the organisation. Preparing for standardised data templates and interoperable systems also helps break down silos and support better decision-making. Bold collaboration across industries and regions is the order of the day; it is essential to drive efficiency and effectiveness.

When it comes to sustainability reporting, ACCA’s message to boards is clear: act now. Be proactive and begin building a foundation for continuous improvement. Sustainability reporting is not a standalone exercise, but part of building a business that understands its impacts, prepares for risks and positions itself to thrive in a changing world.

Sharon Machado is head of sustainable business at ACCA.