A practical guide for boards and 
leadership teams on sustainability
November 2021

A practical guide for boards and leadership teams on sustainability
Document title
Mazars
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A practical guide for boards and leadership teams on sustainability
Contents
02	
Preface
04	
Introduction - Commit, think and act
06	
Why sustainability should be high on the agenda of the 
board and leadership team
10	
Seven critical success factors for a sustainable board 
and leadership team
14	
Key questions for boards and leadership teams
16	
Practical next steps for boards and leadership teams 
tackling sustainability
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A practical guide for boards and leadership teams on sustainability
Preface
With societal expectations permeating corporate governance more 
and more, companies’ business models need to evolve to embrace 
lasting value creation that benefits not only the shareholders but 
also internal and external stakeholders, as well as wider society. 
In this context, ecoDa and Mazars are pleased to 
publish this practical guide,  which is aimed at 
helping board members and leadership teams 
navigate their companies’ sustainability journey. 
It is based on making a commitment to being 
sustainable, carefully thinking through the key issues 
they need to address and, finally, taking action to 
bring about the necessary change. 
This guide offers a wide range of insights on key 
aspects to consider and what questions to discuss, 
from why boards and leadership teams should 
commit to fostering sustainability, to how to move 
to determined action. The practical approach helps 
board members and business leaders to assess their 
effectiveness in achieving long-term sustainability.  
Governments, investors and directors are all placing 
increasing focus on sustainability. As a consequence, 
there is a heightened emphasis on the relationship 
between environmental, social and governance 
(ESG) issues, particulalry in Europe. This triggered 
the development of our practical guide which 
resonates with ecoDa’s recent publication, ‘Five 
Corporate Governance guidelines to accelerate 
change and sustainable growth in Europe’, which 
outlines good practice already implemented in 
some European countries, conducive of sustainable 
success and economic growth.
One of the guidelines is ‘to commit to ESG as a 
differentiating strategic competitive advantage 
for longer-term sustainable value creation’. This 
view is also reflected in our joint guide which steers 
boards away from approaching sustainability as an 
add on, tick-boxing compliance exercise or a mere 
marketing-driven initiative. 
Both publications complement each other on the 
steps board members should take to embed ESG 
value drivers into sustainable business models. 
While the Guidelines focus on best practices 
conducive to sustainable and profitable growth, this 
Guide elaborates on how to implement them in 
a systematic way while taking a forward-looking 
approach to setting clear next steps and objectives.
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Leena Linnainmaa
Chair of ecoDa and 
Secretary General of the 
Director’s Institute Finland
Gareth Jones
Global Head of Privately Owned 
Business at Mazars

A practical guide for boards and leadership teams on sustainability
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A practical guide for boards and leadership teams on sustainability
Introduction
Commit, think and act 
The contribution of business to society in 
a changing world 
Businesses are the engine of wealth creation and 
play a vital role in building a healthy and prosperous 
society. There has been concern that, in some 
instances, too great an emphasis has been placed 
on short-term profit maximisation at the expense 
of a more balanced focus on long-term, sustainable 
success1.  With four-fifths of the market value 
of leading businesses now centred on people, 
relationship-based assets and other intangibles, the 
business community will benefit from expanding 
its view of success. When focusing on wealth 
creation boards and leadership teams must build 
lasting value simultaneously for businesses, their 
shareholders, other stakeholders and wider society.
Moreover, with employees, customers, investors, 
finance providers, governments and the media all 
highlighting the importance of sustainability, the 
threat to the ongoing viability of businesses if 
boards fail to address ESG issues effectively is 
substantially increasing.
How boards and leadership teams can 
contribute to sustainability 
Boards and leadership teams can manifest their 
support for sustainability in a number of ways, 
including minimising their environmental footprint in 
order to mitigate the risk of climate change, adopting 
fair human rights  policies (for example, diversity 
and inclusion), offering secure employment at living 
wages,  treating their customers fairly, building 
ethical and environmentally friendly supply chains 
and  transparent and balanced tax policies.
An approach based on commitment, 
thinking and action
The guide encourages boards and leadership teams 
to make a commitment to fostering sustainability, 
to think deeply about the benefits and potential 
challenges of doing so, and supports them to move 
to determined action. We believe that genuine 
commitment will yield far better results for the 
business, its shareholders, other direct stakeholders 
and wider society than a compliance-orientated tick-
box approach or just giving the appearance of being 
interested in sustainability.
1 	Financial Statement Impact of Intellectual Property & Cyber Assets: 2020 Aon-Ponemon Global Report conducted independently by the 
Ponemon Institute and sponsored by Aon	
Supporting businesses at different stages 
of their sustainability journey
This guide is designed to be used alongside 
existing corporate governance codes and national 
and international regulations, standards and 
principles. It recognises that there will be difficult 
decisions for boards and leadership teams to 
make as they move towards building sustainable 
success. The guide also recognises tht businesses 
are unique and currently at different stages of their 
sustainability journey.
How to use this guide
This is a practical guide for boards and leadership 
teams on how to achieve sustainable success. It 
addresses the importance of leadership and 
direction on sustainability and the increasing 
legal and regulatory responsibilities directors 
face in this area. It is aimed at boards of listed and 
privately owned businesses, including those led by 
entrepreneurs or family business owners.
The first section sets the scene for why directors and 
leadership teams should be placing sustainability 
high on their agenda, and outlines critical success 
factors to support directors in shaping the path 
ahead for their business.
This is followed by a series of questions designed to 
enable directors and leadership teams to identify 
areas where further action is needed. The final 
section provides a tool to assess the stage at which a 
business is currently at on its journey across different 
dimensions towards sustainable success. By working 
through the last section of the guide, boards and 
leadership teams will be able to understand their 
current position, and identify focus areas that will 
have the greatest positive impact on their business 
to achieve long-term sustainability.
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A practical guide for boards and leadership teams on sustainability
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A practical guide for boards and leadership teams on sustainability
Why sustainability should be high on the agenda of 
the board and leadership team
Covid-19 has led to a step change in the 
focus on sustainability
The pressure on boards and leadership teams to 
address sustainability has increased significantly  
in recent years and a step change has occurred 
as a result of the Covid-19 pandemic. From an 
environmental perspective, the reduction in 
business and personal activity has resulted in 
beneficial effects on the environment that many 
are keen to see preserved. At the same time the 
link between the natural environment and public 
health, with particular reference to the risks of future 
pandemics, is being discussed more than ever.
Crucially, governments in Europe and across the 
world have been providing unparalleled support for 
business. In many cases these packages of support 
have been tied to ‘green outcomes’ with a special 
focus on accelerating the transition to a zero-carbon 
economy. Moreover, on social issues the benefits 
of an engaged and positive workforce during the 
crisis have come to the fore. The Covid-19 crisis has 
stressed the importance of S (social) in ESG, which 
was lacking attention.
In this section we look at a number of the key drivers 
fuelling the need for sustainability to be high on the 
board’s agenda.
Society’s expectations
Society’s expectations on sustainability are set out 
in The 2030 Agenda for Sustainable Development,  
adopted by all United Nations Member States in 
2015. This ‘provides a shared blueprint for peace 
and prosperity for people and the planet, now and 
into the future’. It comprises of 17 Sustainable 
Development Goals (SDGs), covering a range of 
issues such as ending poverty, improving health 
and education, reducing inequality, tackling climate 
change, and working to preserve oceans and forests.
Concerns and implications 
around “greenwashing”
The growing number of ESG related credentials has 
been met by increased concern over their credibility.
Governments and regulators are increasingly 
seeking to avert “greenwashing” with new regulatory 
requirements. At the same time there has been 
increased scrutiny into the authenticity of such 
claims, with high profile regulatory investigations and 
even legal actions taken against these practices.
2 A European Green Deal
Regulatory requirements
The EU’s Green Deal2 has committed the European 
Union to becoming a global leader in sustainable 
finance. In addition, the European Commission’s 
Action Plan on Sustainable Finance, adopted in 
March 2018, has three main objectives:
	• To mobilise capital flows towards sustainable 
investment, to achieve sustainable and 
inclusive growth.
	• To manage financial risks stemming from 
climate change, environmental degradation and 
social issues.
	• To foster transparency and long-termism in 
financial and economic activity.
The above has a direct impact on companies in 
terms of reporting requirements and the need for 
processes, systems and controls which will facilitate 
the production of high-quality corporate information 
on sustainability. 
The reporting requirements in the current 
Non-Financial Reporting Directive apply to large 
Public Interest Entities (PIEs). However, the recent 
proposal for a Corporate Social Responsibility 
Directive (“CSRD”) changes this scope to include 
all large companies and all companies listed on 
regulated markets (except listed micro-enterprises)
and goes further to introduce mandatory assurance 
of ESG disclosures. To help you to keep up with 
these important regulatory changes and the impact 
on your business, Mazars has created a Let’s Talk 
Sustainability podcast series.
At the same time a number of other major initiatives 
are in progress at a European level relating to non-
financial standard-setting, corporate governance 
related to sustainability and the development of a 
green taxonomy and the upcoming social taxonomy. 
Particularly relevant for directors are the proposals 
for a European Directive on Sustainable Corporate 
Governance. This initiative aims to introduce 
new rules on incorporating sustainability in 
long-term business strategies. The proposals 
comprise of far reaching changes which include 
an extension of directors’ duty of care to a wide 
group of stakeholders, mandatory human rights 
and environmental due diligence, alignment 
of directors’ remunerations with longer-term 
objectives, including non-financial performance and 
sustainability expertise on the board.
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A practical guide for boards and leadership teams on sustainability
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Competitive advantage
A proactive approach to sustainability can 
increase competitive advantage in a number of 
ways, including the ability to recruit and retain 
talented employees, corporate reputation, customer 
satisfaction and brand loyalty. These will contribute 
to financial performance through higher margins and 
an increase in their value creation potential through 
the development of sustainable processes, products 
and/or services.
Additional financial benefits for organisations willing 
to commit to ‘going green’ may include tax incentives, 
and reduced operations costs thanks  to decreases in 
raw material waste and logistical inefficiency. 
Today’s consumers, led by millennials and Gen Z, 
are driving the demand for sustainability and are 
willing to look past potential savings to support 
environmentally conscious products and companies. 
A survey by Accenture3 (including 6,000 consumers 
in 11 countries across North America, Europe and 
Asia) found that nearly three-quarters (72%) of 
respondents said they are currently buying more 
environmentally friendly products than they were 
five years ago, and 81% said they expect to buy even 
more over the next five years. 
More motivated and engaged employees
In recent years, sustainability has taken a leading 
position in the recruitment and retention of talented 
employees. Companies cannot ignore the demands 
of Gen Z4 who form a vital and increasingly important 
element of the workforce. Cone’s 2017 Gen Z CSR 
Study: How to Speak Z5, for example, found that 94% 
of this generation believe that companies should 
address urgent societal and environmental issues 
and will consider the social purpose of a company 
when deciding where to work. 
3 Accenture Chemicals Global Consumer Sustainability 
Survey 2019	
4 Generation Z, born between 1996 and 2012, are expected to 
make up 24% of the workforce by 2020.
5 Gen Z CSR Study: How to Speak Z

A practical guide for boards and leadership teams on sustainability
Why sustainability should be high on the agenda of 
the board and leadership team
Recruiting and retaining the most able talent is key 
to increasing productivity and growth. Research 
carried out by McKinsey & Company6 explained that 
quality employees are 400% more productive than 
average employees. In addition, the retention of 
an employee saves the costs of recruiting, training, 
and building the expertise of new employees. It 
also help guard a company’s intellectual property, 
operations and customers secure. A commitment 
to sustainability also helps to promote a strong 
corporate culture. According to a global survey7 with 
20,000 participants, published by Hewlett Packard, 
employees are more productive, motivated, and 
engaged when working for an employer who is a 
leader on social responsibility. 
Greater investor engagement 
Investors, and not just those of specialist funds, 
are now focusing their attention on ESG issues. 
In November 2020, for example, the Institutional 
Investors Group on Climate Change (IIGCC), set out 
investor expectations for directors and auditors8. This 
came about as a result of a perception that too many 
company accounts were leaving out material climate-
related impacts. According to the IIGCC document, 
this puts shareholder capital at risk and, at the same 
time, could have catastrophic consequences for 
the planet. The signatories to this document have 
indicated an intention to be more assertive in their 
engagement with boards and, specifically, audit 
committees on these matters. 
Expectations of finance providers
Banks and other providers of debt capital recognise 
that the repayment of longer-term loans is 
dependent on businesses having regard for the 
changing business environment in which they 
are operating and the resultant risks.  A focus on 
sustainable finance by lenders involves looking at a 
combination of climate finance - referred to under 
the Paris Agreement as ‘finance to fund activities 
that reduce greenhouse gas emissions or help in 
adapting to the impact of climate change’- and 
the objectives of the UN SDGs which, as discussed,  
integrate environmental and social issues. 
6 Attracting and retaining the right talent
7 HP Workforce Sustainability Survey
8	Investor expectation for Paris-aligned accounts, 
IIGCC, November 2020
9 World Economic Forum’s Risk Report, 2021	
Sound risk management
When the World Economic Forum’s Global Risks 
Report was first published in 2004, the top global 
risks in terms of impact included only one ESG risk. 
But today ESG risks account for four of the top five 
risks in terms of impact. According to the 2021 
World Economic Forum’s Global Risks Report9, 
environmental threats are among some of the 
greatest by likelihood and impact. Climate-related 
matters make up the bulk of this year’s risk list, and 
are described by the report as “an existential threat 
to humanity”. Thus, if economies, and companies, are 
going to continue to prosper they need to carefully 
identify risks and then manage them effectively. 
Boards and leadership teams can no longer deny that 
ESG risks are now a part of everyday business reality.
Top risks
by likelihood
by impact
Interstate relations 
fracture
Extreme 
weather
Cybersecurity 
failure
Biodiversity 
loss
Climate action 
failure
Livelihood 
crises
Digital 
inequality
Digital power 
concentration
Infectious 
diseases
Human environmental 
damage
Extreme 
weather
Biodiversity 
loss
Climate action 
failure
Livelihood 
crises
Infectious 
diseases
Human environmental 
damage
Natural 
resource crises
Weapons of mass 
destruction
Debt crises
IT infrastructure 
breakdown
Source; Global Risks Report 2021
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A practical guide for boards and leadership teams on sustainability
Many boards and business leaders are 
taking sustainability seriously. Are you?
Examples of business leaders’ initiatives on 
sustainability include: the Davos Manifesto10 
from the World Economic Forum and the 
Business Roundtable’s Statement on the 
Purpose of a Corporation11. 
Other company-led initiatives include movements 
such as Build Back Better, where a coalition of CEOs 
published an open letter calling for the creation of a 
post-Covid-19 global economy that boosts society, 
the planet and shareholders for future generations, 
existing public, private and non-profit sectors.
In this context, it is now imperative for successful 
boards and business leaders to engage with 
ESG-related matters not only to demonstrate that 
they are meeting their increased responsibilities in 
this area but also to ensure that they future-proof 
the companies they manage, leading to long-term 
sustainable growth and value creation.
10 Davos Manifesto, The World Economic Forum
11 Statement on the Purpose of a Corporation, 
	  The Business Roundtable
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A practical guide for boards and leadership teams on sustainability
Seven critical success factors for a sustainable board 
and leadership team
Increasing board and leadership team 
emphasis on sustainability
This trend, towards a stronger board and leadership 
team emphasis on sustainability, is reflected in the 
evolution of national corporate governance codes 
which now often cover directors’ duties in relation 
to sustainability. As noted in the previous section, 
there is a debate in the EU and other jurisdictions 
aiming to cast sustainability as a fiduciary duty for 
directors. Meanwhile, reports like those issued by 
the Financial Reporting Council’s (FRC) Financial 
Reporting Lab (Climate-related corporate reporting 
and Workforce-related corporate reporting) and the 
French Association of Private Enterprises (AFEP) 
and the French Employer Federation (MEDEF) 
(Guiding companies to build their energy & climate 
scenarios) seek to encourage best practices through 
market pressure. 
An issue for all board members combined 
with executive leadership 
Sustainability needs to be seen as an issue for 
all members of the board, or those leading the 
business, and not just directors in selected positions. 
Effective executive leadership on the issue will be 
very important. 
Boards and business leaders need to decide the most 
appropriate leadership structure that allows them to 
give appropriate attention to sustainability issues. 
This may involve setting up a specialist committee 
or group, appointing an independent director with 
specific responsibilities for sustainability matters, or, 
alternatively, cover relevant matters directly at board 
level. Similarly, boards may decide to appoint a chief 
sustainability officer (CSO) at executive level, or 
to integrate sustainability responsibilities within all 
senior roles.  
The critical issue is that boards and leadership teams 
must deliver a high level of attention to sustainability 
issues at both a strategic and operational level, with 
appropriate targets set and their achievements 
monitored through relevant KPIs. 
Need for a willingness to embrace a 
step change
Wherever a board or leadership team embarks 
on their sustainability journey, their approach to 
addressing ESG issues should be one of accepting, 
and welcoming, a step change. This will be necessary 
as addressing sustainability effectively will involve 
rethinking corporate structures, processes and 
performance measurement. It will also offer the 
opportunity to strengthen all aspects of the 
business. Future-proofing the sustainability of the 
business, however, has to be an ongoing priority 
rather than a one-off recalibration.  
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For boards with a genuine commitment to building businesses 
focused on long-term sustainable success for the benefit of all their 
stakeholders and wider society, applying the seven critical success 
factors set out in this section will help to successfully implement the 
‘commit, think, act’ approach outlined in the introduction.

A practical guide for boards and leadership teams on sustainability
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Purpose led
Openness
in reporting
A learning
approach
- a journey
Stakeholder
oriented
Strong 
organisational
culture of
sustainability
Leadership
and tone from
the top
Sustainability
deeply embedded
throughout the
business
1. Leadership and tone from the top
The board, or leadership of the business, should be 
wholeheartedly committed to achieving sustainable 
success and have put in place an appropriate 
structure to enable it to achieve its goal.  
Board members and others leading the business 
should also act as personal role models in promoting 
the leadership’s chosen approach. For example, 
by linking their remuneration significantly to 
sustainability goals, and showing a willingness to 
take decisions that may have a short-term adverse 
impact on profitability, but will strongly benefit 
the long-term goals of the business. They will also 
demonstrate a keenness to keep up to date on 
sustainability developments, and adapt their 
strategy accordingly. 
Whichever governance structure they choose to 
adopt, board members and senior executives need to 
ensure sustainability is fully on their agenda with the 
necessary targets set, performance measured, risks 
identified and managed and appropriate follow-up 
action taken.
2. Purpose led
The ultimate responsibility for defining purpose rests 
with the board, or those responsible for leading the 
business, and they have a duty to take a longer-term 
perspective extending beyond the tenure of any 
management team.
Each business should have an inspiring, durable 
and credible purpose which, if fulfilled, will lead to 
sustainable success for the business, its stakeholders 
and society. The purpose should be approved by the 
board and shareholders following full consultation 
with other stakeholders. 
With a well-defined purpose as its foundation, 
board members and senior executives, are then 
empowered to ensure that the business model and 
strategy are aligned to it. The strategy discusses how 
the business will seek to serve social needs and, as 
a result, address the key challenges in society that 
are relevant to it. In doing this, it will discuss how the 
business will seek to eliminate, or at least reduce to 
the greatest extent possible, any negative impacts 
it imposes on society as well as seeking to achieve 
positive impacts.
Seven critical success factors for a sustainable board

A practical guide for boards and leadership teams on sustainability
Seven critical success factors for a sustainable board 
and leadership team
3. Stakeholder orientated
Strong emphasis must be placed on engaging 
in a two-way dialogue with stakeholders and 
shareholders. This includes treating them fairly, both 
in business and financial terms. In doing so,  the 
board, or its equivalent,  must seek to understand 
issues of importance to all stakeholders and provide 
feedback on any concerns raised.
The relationship the board seeks to develop with 
its stakeholders, including shareholders, as defined 
by goals and priorities, should be set out in a clear 
statement. For example, on employee matters this 
may include clear policies and targets with regard 
to diversity and inclusion, including gender and 
ethnic diversity in senior roles, along with processes 
to monitor and report on the progress being made 
towards meeting its goals. Similarly, boards wanting 
to respond to investors who include ESG factors in 
their assessments need to  ensure that relevant ESG 
issues inform their corporate strategy.
There should also be the appropriate means 
for identifying all stakeholders’ views on their 
relationship with the company. This will include 
determining the most suitable ways to segment 
information for analysis purposes, for example, by 
countries in which employees are based and/or their 
level of seniority.
4. Strong organisational culture of 
sustainability
The board, or those responsible for leading the 
business, must clearly articulate the culture and 
values of the business and how these support its 
commitment to delivering its strategy for achieving 
sustainable success. 
These values must be at the heart of the business 
and fully considered in decision-making, including 
on matters relating to its employees and to business 
transactions such as investments and disposals. An 
employee’s alignment with the values should play a 
pivotal role in recruitment, progression and reward.
Chosen values should seek to ensure the business 
always acts in an ethical manner and upholds the 
human rights of all its stakeholders. 
The executive leadership should promote and 
nurture the desired culture and regularly assess 
whether it is aligned with the prevailing culture in 
all parts of the business. This is done by considering 
the extent to which the purpose is being fulfilled and 
applying the values consistently across the business, 
by identifying areas for improvement and taking 
purposeful follow-up action that is monitored to 
ensure any necessary changes are being secured.
5. Sustainability deeply embedded 
throughout the business
Ownership of purpose starts with the board, or 
those leading the business, who must put in place 
appropriate structures, control and information 
systems, and processes for delivering it. This 
requires engaging effectively and genuinely with 
shareholders, employees and other stakeholders 
such as customers, suppliers, investors and other 
providers of finance. 
Whilst oversight may be exercised by the risk, 
compliance, and ethics committees, or other 
specialist committees, senior management 
must take responsibility for ensuring that the 
company’s mission is embraced by everyone in the 
organisation at all levels  by creating and overseeing 
internal communication strategies to ensure that 
the company’s purpose is being effectively diffused 
throughout the organisation.
Metrics used to determine promotion and 
remuneration policies need to be closely aligned to 
sustainability targets. Commitment to the purpose 
and values of the business needs to be rewarded 
through a broader set of financial and non-
financial metrics which should be used to evaluate 
performance over longer time frames. 
Due attention also needs to be paid to risk 
management on matters related to sustainability, 
with regard to ESG issues, with emphasis placed on 
learning from problems which arise or near misses, 
industry developments, and having effective crisis 
management policies in place.
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A practical guide for boards and leadership teams on sustainability
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6. A learning approach - a journey 
Sustainability is a journey. It is not an end point that 
you finally reach, and you are suddenly ‘sustainable’. 
It’s a path towards realigning the company’s 
purpose, its strategy and business model in harmony 
with nature, people, and communities. 
As companies increasingly engage in sustainable 
business practices, the importance of understanding 
how to continuously learn about sustainability—and 
spread this learning across the business—becomes 
critical. Care also needs to be taken not to assume 
that making improvements will automatically 
strengthen your relative performance, as others may 
be moving forward at a faster pace. 
The aim must be to be constantly improve and set 
challenging, but achievable, targets to encourage a 
positive learning approach.
7. Openness in reporting
Reporting requirements on non-financial 
information are increasing and include the board 
or leadership team’s approach and the setting of, 
performance targets and metrics. 
The key to success with sustainability is long-term 
commitment and conviction, honest reporting and 
steady progress. The corporate landscape is going 
through continuous and fast-paced change and 
boards, or their equivalent, need to be ready and 
sufficiently agile to respond to changes.  
As with financial reporting, the board, or its 
equivalent, is responsible for producing relevant and 
reliable sustainability information in accordance 
with an appropriate framework, ensuring that there 
are underlying processes and systems that enable 
it to do so. The information should also contain 
elements to meet the needs of the company’s key 
stakeholders. In doing so, boards must remain up to 
date with the continuous and rapid developments 
in frameworks and standards for non-financial 
reporting. They also need to ensure the controls 
over the reporting of sustainability information are 
effective and decide the role of internal or external 
assurance with regards to what is reported.    
Given increasing focus from investors on ESG 
matters, boards should:
	• Be in a position to openly and transparently 
engage with investors on non-financial aspects 
and how they impact the company’s value 
creation, commenting both on positive aspects 
and areas for development.
	• Ensure that ESG topics are reflected in all 
marketing and public communications in a fair 
and balanced way, that remains consistent with its 
purpose and strategy.
	• Participate in industry-based or broader initiatives 
to explain its approach, share experiences from 
strategic application, and to promote its adoption 
by other businesses and to learn from them.

A practical guide for boards and leadership teams on sustainability
Key questions for boards and 
leadership teams
To help boards, or those responsible for the 
leadership of the business, assess their commitment 
and effectiveness in achieving long-term 
sustainability we have designed a series of questions, 
which can be used to guide conversations between 
board members to:
	• Recognise the need for action.
	• Determine how far they have engaged on the topic 
of sustainability so far.
	• Form a broad view of the key areas to focus on 
in order that they are able to meet their legal, 
regulatory and societal obligations.
The questions should be reviewed by the whole 
board, or equivalent, and taken as an illustrative 
rather than an exhaustive list. They have been 
developed with a view to creating inspiring and 
encouraging conversations recognising that, 
whilst individual boards or leadership teams will 
be at different stages of their journey to creating 
sustainable success, this guide will support 
businesses at any stage of their journey to build on 
their progress to date.
The ultimate goal is for the board, or equivalent, to 
determine what stage they and the company are 
currently at with regard to sustainability and 
define an action plan with clear next steps and 
objectives. For further information please refer 
to the following section.  
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A practical guide for boards and leadership teams on sustainability
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Leadership and tone 
from the top
1.	
How is sustainability afforded sufficient priority on the meeting agendas of 
the board or those responsible for leading the business?
2.	 What is the level of understanding and mindset on sustainability within the 
board or by those leading the business?
3.	 Does the board, or equivalent, lead on sustainability by example?
4.	 What is holding you back from achieving your sustainability goals?
Purpose led
5.	 Does your company’s statement of purpose fully encompass sustainability?
6.	 Is the purpose at the heart of the organisation’s focus?
7.	 Are the culture and strategy aligned with the purpose?
Stakeholder orientated
8.	 Is the board, or equivalent, aware of and does it regularly engage with all 
key stakeholders to understand their perception of the nature of material 
ESG impacts?
9.	 How effective is this engagement?
10.	 Is there evidence of unaddressed concerns of stakeholders?
Strong organisational   
culture of sustainability
11.	 To what extent do the culture and values of the business properly reflect the 
commitment of the board, or those leading the business, to sustainability? 
12.	 What are the key challenges to ensuring the desired and actual culture 
and values are aligned and are they being addressed by the board or those 
leading the business?                  
Sustainability deeply 
embedded throughout 
the business
13.	 Is there a clear focus on both risks and opportunities associated with 
social, environmental and economic impacts, as measured from the 
stakeholders’ perspective?
14.	 Are targets on sustainability defined and their implementation monitored? 
Can they be improved?
15.	 Do remuneration policies and other incentives reflect the purpose and 
values of the business and the progress being made to achieving long-term 
sustainable success? 
A learning approach -
 a journey
16.	 How effective is the process for identifying emerging sustainability issues, 
within the business and the wider sector, and bringing them to the attention 
of the board or those leading the business?
17.	 	Does the board, or equivalent, learn lessons from problems arising and near 
misses both in the business and more widely in the sector?
Openness in reporting
18.	 How extensive and reliable is sustainability reporting in the annual 
report? Is it fair and balanced and free of ‘greenwashing’ which shows the 
performance in an unduly favourable light?
19.	 Is there effective reporting focused on the material needs. Not ALL needs 
have to be addressed, only those that are deemed material both by the 
company and its stakeholders.

A practical guide for boards and leadership teams on sustainability
Practical next steps for boards and leadership teams 
tackling sustainability 
Mazars
16
Periodically, as a board or those leading the business, 
you should endeavour to:
	• Consider your sustainability strategy and 
plans in the context of the responsibilities 
assigned to you as a director or as a board by 
law, regulation and your shareholders’ and other 
stakeholders’ expectations.
	• Ensure that you are doing all that is necessary 
to demonstrate that these responsibilities are 
being met.
	• Understand and confirm the sustainability 
risks and opportunities relevant to your 
business and whether these reflect those 
of your key stakeholders.
	• Form a view on whether sustainability is a tick-box 
exercise or a mere marketing tool rather than it 
being fully embedded in the business.
	• Set short, medium and long-term targets on 
where you would like your company to be along 
the sustainability journey which will guide your 
actions going forward.
	• Determine priority areas and identify quick wins 
in line with the strategy to get started or if you are 
already tackling sustainability how you can up 
your game. 
With this in mind, we have designed the following 
table which provides a non-exhaustive list of 
potential next steps which you may want to consider, 
depending on the level of maturity of your board or 
leadership team on sustainability. This could be a 
good starting point for designing a bespoke plan 
of action depending on the specific needs and 
priorities of your company. 
Depending on where you are on your sustainability journey, there 
are different aspects which you as a board should consider. Whether 
you are just starting out or you are already making progress, it is 
good to stand back and reflect on whether you are on the right track 
and determine what your next steps should be. 
Using the table
The table is set out as follows:
	• Each column indicates one of four broadly 
defined levels of maturity of the board or 
leadership team.
	• The rows provide a list of suggested next steps 
for considering and embedding sustainability 
into your business.
	• The ♦ included against each step suggests 
which level of board or leadership team 
maturity, in relation to sustainability, it would be 
more relevant to. 
We propose you read through the table and 
using the last column mark those steps you 
consider relevant to your business. You may find 
that the level of maturity varies according to 
the topic being considered. This exercise is not 
intended to be detailed or time consuming and 
should be carried out based on your perception 
and knowledge rather than enquiries with the 
business. It has been designed to encourage 
boards and leadership teams to think more 
holistically about sustainability. 
The exercise can be taken one step further by 
suggesting that each member of the board or 
leadership team follows the same process, as 
preparation for a more formal discussion on 
sustainability to collectively determine a plan of 
action. The combined responses could indicate 
the areas which are considered important by the 
majority of members.

A practical guide for boards and leadership teams on sustainability
Mazars
17
The board or leadership team has not yet 
considered sustainability 
The board or leadership team is not sure
if or why sustainability is relevant to
the business
The board or leadership team has 
embarked on the sustainability journey and 
needs to validate the direction of travel
The board or leadership team is leading a 
well-established sustainability journey and 
wants to do more
Mark with an X each of the steps you 
consider as relevant next steps 
for your business
Review and understanding of board or leadership 
team responsibilities linked to sustainability:
	• Legal
	• Regulatory
♦
♦
Identification of priority/material ESG areas
Set/review your vision of where the company is 
and where it should be   
♦
♦
♦
Perform an ESG health check to identify/
confirm material risks, opportunities and 
impacts in relation to your business from a 
stakeholder perspective
♦
♦
Perform a benchmarking exercise comparing 
your business and its sustainability status 
to that of some peers (ESG ratings, ESG 
disclosures, reputation etc.)
♦
♦
♦
Engage with key stakeholders (including 
shareholders):
	• Do your company’s priorities reflect those of 
your key stakeholders?
	• Do your stakeholders agree with the 
selection of the UN Sustainable Development 
Goals (SDGs)?
Update the company’s sustainability risk matrix
♦
♦
♦
Select or review the SDGs relevant to your 
business. This exercise should include both 
those in relation to which the business has a 
negative impact, which should be eliminated, 
and those where it can have a significant 
positive impact linked to its purpose, culture 
and strategy
♦
Perform a materiality assessment exercise 
to identify or confirm the key ESG risks and 
opportunities relating to your business
♦
♦

A practical guide for boards and leadership teams on sustainability
Practical next steps for boards and leadership teams 
tackling sustainability 
Mazars
18
The board or leadership team has not yet 
considered sustainability 
The board or leadership team is not sure
if or why sustainability is relevant to
the business
The board or leadership team has 
embarked on the sustainability journey and 
needs to validate the direction of travel
The board or leadership team is leading a 
well-established sustainability journey and 
wants to do more
Mark with an X each of the steps you 
consider as relevant next steps 
for your business
Perform a mapping exercise of your main first and second tier suppliers and identify the 
key ESG risks and opportunities your business is exposed to by doing business and being 
related to these suppliers.
Supply chain: spot check risks and 
opportunities including social and 
environmental aspects and of the key impacts 
of operations on your supply chain:
	• Regulatory reporting requirements
	• Industry-specific requirements
	• Policies and procedures
	• Map the scope/extent of your supply chain
	• Availability of data
	• Perform due diligence to ascertain and 
evaluate risks 
♦
♦
Designing an ESG action plan
Design/review your sustainability action plan 
including:
	• Short, medium and long-term goals
	• Relevant KPIs
	• Establish targets
♦
♦
Deep dive into your business plan, strategy, 
mission and vision to align/realign them with 
the company’s sustainability objectives
♦
♦

A practical guide for boards and leadership teams on sustainability
Mazars
19
The board or leadership team has not yet 
considered sustainability 
The board or leadership team is not sure
if or why sustainability is relevant to
the business
The board or leadership team has 
embarked on the sustainability journey and 
needs to validate the direction of travel
The board or leadership team is leading a 
well-established sustainability journey and 
wants to do more
Mark with an X each of the steps you 
consider as relevant next steps 
for your business
Embedding sustainability into the business
Develop/review your sustainability 
governance structure
♦
♦
Establish/review whether and how 
sustainability is reflected and embedded in your 
company’s corporate culture 
♦
♦
Perform a skillset audit to identify gaps:
	• Board/management level
	• Company wide
♦
♦
♦
Consider/establish/review performance-related 
incentive schemes linked to ESG targets 
and objectives
♦
♦
Sustainability reporting
Consider your sustainability reporting:
	• What does this include? Annual report? 
Separate sustainability report? Other?
	• Are your disclosures relevant, meaningful, 
and reliable?
	• Consider level of compliance with legal and 
regulatory requirements
	• Review appropriateness of ESG metrics 
and targets 
♦
♦
Consider and determine whether assurance 
should be:
	• Internal or external
	• For external, whether limited or reasonable
	• Scope of each kind of assurance
♦
♦

A practical guide for boards and leadership teams on sustainability
Practical next steps for boards and leadership teams 
tackling sustainability 
Mazars
20
The board or leadership team has not yet 
considered sustainability 
The board or leadership team is not sure
if or why sustainability is relevant to
the business
The board or leadership team has 
embarked on the sustainability journey and 
needs to validate the direction of travel
The board or leadership team is leading a 
well-established sustainability journey and 
wants to do more
Mark with an X each of the steps you 
consider as relevant next steps 
for your business
Depending on the relevance of each of the areas below, as a board you may want to consider the following:
Environment
Climate: spot check where you are and where 
you would like to be:
	• Regulatory reporting requirements
	• Industry-specific requirements
	• Initiatives underway towards meeting 
set targets
	• Is it enough? What are peers doing, what do 
shareholders and other stakeholders need?
	• Have opportunities arising from climate 
change been sufficiently considered?
♦
♦
Biodiversity: spot check on where you are 
and where you would like to be, including 
topics such as water use, waste, forests, 
desertification:
	• Regulatory reporting requirements 
	• Industry-specific requirements
	• Best practice
	• Initiatives underway towards meeting 
set targets
♦
♦

A practical guide for boards and leadership teams on sustainability
Mazars
21
The board or leadership team has not yet 
considered sustainability 
The board or leadership team is not sure
if or why sustainability is relevant to
the business
The board or leadership team has 
embarked on the sustainability journey and 
needs to validate the direction of travel
The board or leadership team is leading a 
well-established sustainability journey and 
wants to do more
Mark with an X each of the steps you 
consider as relevant next steps 
for your business
Social
Diversity and Inclusion: spot check on where 
you are and where you would like to be, with 
regards to gender, ethnicity, social mobility and 
sexual orientation: 
	• Regulatory reporting requirements
	• Industry-specific requirements 
	• Policies and procedures 
	• Availability of data 
	• Perform due diligence to: 
	• Identify and assess actual or potential 
adverse human rights impacts.
	• Track measures and processes to address 
adverse impacts and assess effectiveness.
	• Design an appropriate action plan.
♦
♦
Other human rights issues: establish whether 
the business is proactively managing potential 
and actual adverse human rights impacts:
	• Regulatory reporting requirements
	• Industry-specific requirements
	• Policies and procedures
	• Availability of data
	• Perform due diligence to:
	• Identify and assess actual or potential 
adverse human rights impacts.
	• Track the effectiveness of measures and 
processes to address adverse impacts 
and assess effectiveness.
	• Design an appropriate action plan.
♦
♦

A practical guide for boards and leadership teams on sustainability
Practical next steps for boards and leadership teams 
tackling sustainability 
Mazars
22
The board or leadership team has not yet 
considered sustainability 
The board or leadership team is not sure
if or why sustainability is relevant to
the business
The board or leadership team has 
embarked on the sustainability journey and 
needs to validate the direction of travel
The board or leadership team is leading a 
well-established sustainability journey and 
wants to do more
Mark with an X each of the steps you 
consider as relevant next steps 
for your business
Governance
Anti-bribery and corruption:
	• Review risk assessment and mitigation plans
	• Review legal and regulatory compliance 
	• Identify industry-specific requirements / 
best practice and benchmark
	• Review and update of policies 
and procedures
	• Assess availability and quality of data
	• Consider the need for a due diligence 
exercise
♦
♦
Cybersecurity:
	• Review risk assessment and mitigation plans
	• Review legal and regulatory compliance 
	• Identify industry-specific requirements / 
best practice and benchmark
	• Review and update of policies 
and procedures
	• Assess availability and quality of data 
	• Consider the need for a due diligence 
exercise
♦
♦

Mazars
23
A practical guide for boards and leadership teams on sustainability
The Board or leadership team has not yet 
considered sustainability 
The Board or leadership team is not sure
if or why sustainability is relevant to
the business
The Board or leadership team has 
embarked on the sustainability journey and 
needs to validate the direction of travel
The Board or leadership team is leading a 
well-established sustainability journey and 
wants to do more
Mark with an X each of the steps you 
consider as relevant next steps 
for your business
Other
(complete with other areas which may be relevant to your specific business, industry sector or geography)
This could include considerations such as water, waste, biodiversity, etc.

Co-authors
Anthony Carey
Senior Advisor, Board Practice and Public Policy, 
Mazars
anthony.carey@mazars.co.uk
Alexia Perversi
Director Sustainability Services, Mazars
alexia.perversi@mazars.co.uk
Michel de Fabiani
Chairman Policy Committee ecoDa 
michel.defabiani@gmail.com 
Beatrice Richez-Baum
Director General of ecoDa
beatrice.richez-baum@ecoda.org
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