Boards are faced with a choice that brings the ESG issue to a head. Either they drive the transition towards sustainable business models and do so in a thoughtful and controlled way. The alternative is to be forced into abrupt turns, when the costs of inaction eventually become too great. The lessons for boards and management are many.
Recently, the issue of sustainability has been somewhat overshadowed by a tumultuous business environment and regulatory delays. However, this does not change the fundamental fact that sustainability is business-critical.
- We live in a highly uncertain world. This puts pressure on short-term results, but not at the expense of long-term sustainability ambitions.
This was the message from Cecilia Almér, ESG expert at Stratsys, in a conversation with a number of key decision-makers in sustainability during Almedalen 2025. The conversation was also attended by Åsa Allan, Chief of Staff of Boliden Mines, Mattias Fritz, CEO of Zurich Nordic and Johanna Wikander, Head of Sustainability at Einar Mattsson.
Although the EU's regulatory framework is perceived as complex, it has provided structure, transparency and comparability. And thanks to this framework, there is now a foundation for companies to build on in their work.
Cecilia Almér, ESG expert at Stratsys
Four Globes Against One
Anna Lindstedt, ESG expert at Stratsys, also participated in the conversation. She emphasized the need to take the issue of sustainability seriously:
- Today, we in Sweden consume resources equivalent to three to four Earths per year. But we only have one. Sooner or later, every business model has to adapt to that fact.
For governments, this means that the costs of inaction become clear. Already today, we are seeing rising prices for raw materials and energy, increased insurance premiums and greater risk of production disruptions. The gap between today's investments in circular business models, climate transition and biodiversity - and what is actually needed - remains huge.
Recommended reading: The cost of inaction - why it's time to take sustainability risks seriously
But the challenge is also an opportunity. As investment grows, it creates entirely new markets for companies that act in time.
Anna Lindstedt, ESG expert at Stratsys
Basis for Business Decisions
The delay in implementing new legislation contributes to creating uncertainty. In this situation, it is all the more important that corporate strategies linked to the business stand firm. In this regard, Cecilia Almér believes that boards must not allow sustainability work to be reduced to reporting:
- It's fine to have a policy, but the work must be concretized throughout the organization - in governance, processes and decisions. Therefore, data needs to be quality assured and used as a basis for business decisions.
The Role of the Board - More than Formal Responsibility
As ESG issues move up the board agenda, the role of the board is also fundamentally changing. Boards are no longer just stewards of financial stability, but also of the long-term sustainability of the company.
This brings several new dimensions:
- Strategic responsibility. ESG must be integrated into business strategy, not seen as a side issue. It is about balancing short-term profitability with long-term value creation and ensuring that sustainability becomes part of the company's competitiveness.
- Risk management. From climate-related damage and resource scarcity to social and regulatory risks, ESG risks are among the most tangible for many companies today. Boards need to have a clear overview of these risks and how they affect the business.
- Capital allocation. The transition requires investments, often large ones. The board needs to make decisions that free up resources for innovation, resilience and long-term sustainability goals - even when this means lower short-term returns.
- Skills and culture. Boards need to raise their own ESG literacy and ensure that sustainability issues permeate the organization's culture. Sustainability cannot be delegated to a function, but must be driven from the top.
- Transparency and trust. In an age where greenwashing cases are on the rise, the board's role is central in ensuring data quality, credible communication and that the company lives up to its promises.
In short, the board's responsibility is no longer just about ensuring that sustainability is addressed, but about leading it forward. This requires both strategic acumen and operational understanding.
Courage in the Boardroom
Ultimately, ESG issues are about leadership. Courage is required to prioritize long-term investments even when short-term gains beckon.
- The boards that are brave today are the ones that will be strongest tomorrow, says Anna Lindstedt.
So what is the lesson for you in the boardroom? Here are three takeaways for boards:
- Link ESG to the business. Sustainability cannot be reduced to reporting, but must be part of strategy and growth.
- Build resilience. Work systematically on scenarios and risk analysis, from raw material supply and climate impact - to supply chains and cybersecurity.
- Be bold. The cost of inaction is getting higher every year. Boards that take long-term decisions now lay the foundation for future competitiveness.
Recommended reading: Guide - ESG Transition Playbook
Are you Ready to Lead the Way?
The cost of inaction is becoming increasingly tangible. But companies that already take active and courageous responsibility at board level can turn challenges into competitive advantages.
Today, sustainability should be a crucial part of business strategy. Companies that dare to integrate ESG into their core business are at the same time building resilience to increasing risks and can make long-term decisions.
As Cecilia Almér pointed out, it is not just about having a policy, but about translating ambitions into governance, processes and decisions - and ensuring data quality as a basis for business choices. Only then can sustainability truly become a competitive advantage.
See how Stratsys can help you take the next step in ESG: Read more about Stratsys ESG solution.
