Governance & Policy

Sustainability Governance

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Definition

Sustainability governance is the system of board oversight, executive accountability, policies, incentives and controls through which an organisation directs and manages its sustainability performance: board committees, executive responsibility (chief sustainability officers), linking pay to sustainability targets, risk management integration, and competence requirements. Disclosure regimes (CSRD, ISSB) require reporting on exactly these structures, making governance the "G" that proves the "E" and "S" are managed rather than marketed.

References

Source organisationSupporting reference

This reference provides supporting context for how “Sustainability Governance” is defined and used.

www.weforum.orgBulk import source

Source imported for editorial provenance.

Overview

How it is used

The concept structures board charters, ESG ratings governance pillars, executive remuneration design, and regulatory expectations for supervised entities (banks, insurers).

Why it matters

Sustainability fails in the boardroom before it fails anywhere else; governance is where its seriousness is decided.