The importance of having an integrated sustainability strategy: Why now is the time to act

As boards and executive teams reflect on full year results, sustainability & ESG strategies have shifted from a “nice to have” to a business-critical priority. This is the moment for organisations to reset priorities and to genuinely embed sustainability and ESG into planning and budgets for the financial year ahead. If your sustainability strategy is already embedded, great! Think about refreshing these goals and commitments to ensure your business can deliver in the timeframes you originally set and disclosed to the market. 

Why timing matters

Linking any strategy to the post-results cycle ensures business commitments – and any revisions to these commitments – are aligned with capital allocation and operational budgets. This is especially important in the world of sustainability too where, in Australia, the new Australian Sustainability Reporting Standards (ASRS) will mandate climate-related disclosures for Group 1 entities as early as CY25 / FY26. Waiting until later risks leaving companies scrambling to retrofit compliance into business-as-usual, rather than building ESG and sustainability initiatives into forward planning from the very outset.

Strategic advantage, not just compliance

Both climate and other ESG-related disclosures are no longer only about risk mitigation or compliance. Done well, disclosure can drive competitive advantage. Investors and lenders are scrutinising climate and social impacts more closely, regulators are demanding greater transparency and consumers are making values-driven choices. Early movers enjoy benefits including improved cost of capital, stronger brand trust, more resilient supply chains – and motivated employees. By prioritising ESG strategy now, organisations can capture these opportunities rather than reacting defensively later.

Embedding ESG and sustainability  

An effective strategy sets measurable ambitions, links them to financial outcomes and sets clear accountability across the organisation. This includes:

• Establishing governance structures that make ESG and sustainability part of everyday decision-making and not a side project
• Engaging stakeholders early (from regulators and investors to employees and communities) to build trust and demonstrate leadership
• Aligning sustainability goals with forward budgets and capital planning
• Stress-testing strategies against regulatory and market scenarios (carbon pricing, shifting consumer expectations, supply chain disruptions)

Why now?

The period immediately after full year results is a natural inflection point: budgets are reset, performance expectations are redefined and strategy for the year ahead is locked in. Integrating ESG into business strategy at this stage ensures it is not a bolt-on, but a driver of both compliance and value creation. Organisations that act now will not only be ready for mandatory reporting but will also strengthen their competitive positioning in an increasingly demanding market.

The final word

The question now is no longer whether to develop a formal sustainability strategy; it’s whether you’re acting early enough. Embedding your environmental, social and governance goals into business strategy directly after full year results is the best way to ensure capex and opex commitment for long-term growth. For boards and executives, now is the time to move sustainability and ESG from aspiration to operational and financial reality.