Is Board Involved In Your Sustainability Strategy?

To state it like it really is: Sustainability is no longer just mere buzzword or a side project reserved for CSR departments only. It has matured into a full-fledged business imperative, one that can determine long-term viability, competitiveness, and even social license to operate.

As environmental, social and governance (ESG) concerns move to the forefront of investor priorities and regulatory frameworks tighten across sectors, the question every CEO and executive team must ask is this: Is our board fully informed and genuinely involved in our sustainability strategy?

For companies seeking to embed sustainability into their DNA, the board of directors is not merely a governance structure, it is the conscience and compass of the organisation. Yet, in many Nigerian companies, especially those outside the financial and extractive sectors, boards remain shockingly aloof from the very strategy conversations that define how a company interacts with its environment, its people, and the future.

This oversight is NOT just a missed opportunity, it is a dangerous blind spot.

A truly sustainable business begins with leadership that understands that ESG risks are business risks. Climate change, gender inequity, labor practices, supply chain vulnerabilities, reputational risks, these are not abstract concerns; they are issues that can influence access to capital, brand value, customer loyalty, and even market survival.

Unfortunately, in several boardrooms, ESG topics still come up as side notes, buried under the weight of financial performance reports and quarterly revenue forecasts. Worse, some board members view sustainability initiatives as cost centers rather than strategic levers that drive innovation, operational efficiency, and long-term growth.

This must change and fast too.

A well-informed board should not just approve sustainability reports after the fact; they should actively shape the company’s sustainability goals, demand accountability, and ask the hard questions. Is our supply chain ethical and climate-resilient? Are we investing enough in community livelihoods and employee welfare? How are we tracking our net-zero commitments? Are we aligning with national and global sustainability frameworks?

Globally, forward-thinking corporations are taking bold steps to embed sustainability into the heart of board governance. Some now have dedicated board committees focused on ESG issues. Others require their directors to undergo continuous education on climate risk, inclusive business models, and sustainable finance. In some jurisdictions, board members’ bonuses are tied to the achievement of sustainability targets. These trends are reshaping how the world defines corporate leadership.

In Nigeria, while notable strides have been made, especially in the banking sector, where regulations by the Central Bank of Nigeria (CBN) have mandated Sustainable Banking Principles, there is still much room for improvement. Outside the regulated financial space, many firms have yet to fully integrate ESG thinking into board-level oversight.

Yet, the urgency to act has never been greater.

From the devastating floods affecting communities and infrastructure, to youth unemployment, to plastic waste choking our urban centers, the evidence is clear: businesses can no longer thrive in a failing society. The role of the board must evolve from being financial stewards to also becoming sustainability champions.

Thankfully, there are a few examples of companies getting it right. Some Nigerian firms have begun to integrate ESG KPIs into their business scorecards. Others are training their leadership teams on sustainability literacy and tasking their boards with setting long-term vision targets around decarbonization, circular economy practices, or diversity and inclusion metrics.

But more needs to be done.

The call now is for boards  and the leaders who appoint them to raise the bar. That means ensuring that at least one or more board members have demonstrated experience or training in ESG-related issues. It means integrating sustainability performance reviews into the same strategic planning cycle as financial goals. It means having the courage to challenge conventional wisdom and explore how your company can create value not just for shareholders, but for stakeholders such as employees, communities, suppliers, the planet.

It also means going beyond boardroom echo chambers to listen to younger voices, civil society actors, climate advocates, and community leaders. After all, sustainability is not an ivory tower strategy. It is a people-first, impact-driven approach that must reflect the complexities and aspirations of the societies in which businesses operate.

So ask yourself again: Is your board informed? Are they trained, engaged, and empowered to ask the right sustainability questions? Are they part of the solution, or merely observers of a ticking time bomb?

As Nigeria and the world contends with increasingly complex development challenges, the companies that will lead the future are those whose boards are not only aware but fully aligned with a clear, ambitious, and actionable sustainability strategy.

Because in the end, corporate survival in the age of climate, social, and ethical disruption will depend not just on innovation, but on intention.

And the boardroom is where that intention must begin.