In today’s environment of trade tariffs, geopolitical tensions and changing regulations, some businesses have quietly scaled back their sustainability commitments by delaying net-zero goals, reducing ESG programmes and taking a wait-and-see approach. According to experts at ACCA’s annual Sustainability Conference, this could prove to be a costly mistake.
Held virtually on Earth Day and attended by finance professionals from more than 100 countries, the conference highlighted that sustainability is no longer just a moral issue, but a financial one. Businesses that fail to integrate sustainability into their core strategies may be exposing themselves to growing risks that are already impacting operations and profitability.
ACCA Head of Sustainable Business Sharon Machado said sustainability should not be treated as a side initiative, but as part of overall business strategy and risk management.
She noted that concerns such as geopolitical disruption, supply chain instability, commodity shortages and extreme weather impacts are all closely linked to sustainability challenges.
Risk, finance and sustainability leader Andrea Amaize said many organisations that have reduced their sustainability efforts are trying to balance long-term goals with short-term financial pressures.
However, she said the immediate effects of sustainability issues are already being felt. Climate change is influencing the cost and availability of insurance, purchasing decisions increasingly include decarbonisation requirements, access to lower-cost capital is becoming linked to sustainability performance, and talent is increasingly drawn to purpose-driven organisations.
Speakers at the conference also stressed that sustainability should not be seen only as a cost, but as a driver of profitability. Strong sustainability strategies can create new revenue opportunities, lower operating costs, improve resilience, strengthen brand value and build competitive advantage.
Amaize added that companies must clearly demonstrate how sustainability creates measurable financial outcomes, with finance professionals playing an important role in proving that link.
