Sustainability has a people problem

illuminem summarizes for you the essential news of the day. Read the full piece on Forbes or enjoy below:

🗞️ Driving the news: As new sustainability reporting requirements like the EU’s CSRD and the IFRS global standards loom, businesses are facing a talent shortage, with 94% reporting they lack the necessary expertise to meet these obligations

🔭 The context: Companies are struggling to align their sustainability strategies due to insufficient in-house talent, particularly in data management and multi-jurisdictional compliance
• Many are over-relying on CFOs or outsourcing, which presents long-term risks

🌍 Why it matters for the planet: Effective compliance with sustainability regulations is crucial for transparency and environmental accountability, but companies must have the right expertise to ensure meaningful progress

⏭️ What's next: As sustainability standards become mandatory, businesses will need to fill critical roles internally, ensuring leaders have both sustainability and financial reporting skills to avoid non-compliance risks

💬 One quote: "The share of companies with CSOs responsible for ESG disclosure rose from 42% in 2022 to 55%, but 47% still rely on CFOs for those duties." — Deloitte’s 2024 Sustainability Action report

📈 One stat: Only 29% of board members feel they have sufficient knowledge to challenge management on sustainability initiatives

Click for more news covering the latest on corporate sustainability