📈 SL Boards: Shifting from Survival to Sustainability Governance

The global conversation on sustainability is moving from mere compliance to strategic governance, demanding greater board accountability and competency. • New Era of Governance: The introduction of IFRS S1 and S2 signals that sustainability is now linked directly to financial governance and board accountability, positioning it as a path to resilience and shared value for Sri Lankan companies. • Competency & Accountability: • Competency must be demonstrable—not self-declared—to properly oversee risks like climate resilience, fair work, and resource efficiency. Accountability without competency is fragile. • Accountability must be cascaded through the organisation using measurable, tangible KPIs. Boards should prioritize leading indicators (e.g., project completion) that measure execution over purely outcome-based metrics. • Strategic Integration: Sustainability must be embedded into Enterprise Risk Management (ERM) to holistically assess exposure and capitalize on transition opportunities. • SL Context & Way Forward: • Sri Lankan boards must shift their focus from survival to deeply integrating sustainability into growth strategies, risk frameworks, and performance measurement (Anushka Wijesinha). • The entire board must understand double materiality, balancing financial impact (IFRS) with societal/environmental impact (GRI) for long-term credibility. • Linking remuneration to verified sustainability metrics, though currently limited in Sri Lanka, is a powerful lever to signal shared performance responsibility.