Why sustainability remains critical to commercial success

When pressure builds, sustainability is often one of the first priorities to be questioned. Boards are navigating cost pressures, geopolitical uncertainty, shifting investor expectations and competing short-term demands. But for organisations looking to manage risk, protect value and stay competitive, the question isn't whether sustainability still matters. It’s how well it’s understood as part of commercial decision-making.

Ahead of the ICAS Sustainability Summit 2026, we asked the members of panel 1, Why sustainability remains critical to commercial success, why sustainability still matters in today’s economic and geopolitical climate, and what business leaders should watch for.

The discussion on the day will bring together three senior voices. They are Tara Schmidt, Executive Director at Transition Finance Scotland; Russell Picot, Deputy Chair of Universities Superannuation Scheme; and Sophie Dejonckheere, Head of Climate and Transition Strategy at Lloyds Corporate and Institutional Bank.

Sustainability as a commercial issue

The idea that sustainability can be paused until economic and geopolitical conditions improve overlooks how closely it’s linked to business performance.

Russell sees sustainability as "fundamentally about understanding the long-term drivers of economic value creation and managing the risks that could undermine it". From energy security and electrification to investment in domestic infrastructure, the transition is already reshaping the UK economy and influencing the decisions organisations make today.

Sophie sees a similar pattern across the markets Lloyds works with. Uncertainty around gas supply and pricing, alongside rising demand for power driven by electrification, data centres and AI, is accelerating interest in transition technologies and renewable energy.

Tara argues that many organisations are moving beyond the idea that commercial priorities and sustainability priorities sit in opposition to one another. Instead, volatile oil and gas prices, global food supply chain exposure and climate-related disruption are driving what she describes as "a renewed and integrated focus on sustainability to advance good risk management and a robust business strategy".

It’s not a case of choosing between commercial success and sustainability, but a recognition that the two are becoming increasingly intertwined. For CAs and finance professionals, that means sustainability is becoming part of the same conversations they’re already having around risk, investment, resilience and long-term value creation.

Moving from intent to impact

For many organisations, the challenge is no longer whether sustainability should be considered, but how it’s translated into decisions that create value, reduce risk or strengthen resilience.

This panel brings together experience of turning sustainability intentions into practical business decisions: improving resource efficiency, building accountability into transition plans, supporting investment in infrastructure and exploring how finance can help unlock opportunities in the real economy.

The details differ by organisation and sector, but the questions are familiar to CAs: What matters financially in the short, medium and long term? Where are risks emerging? What information is needed? Where could action make the greatest commercial difference?

That’s where CAs and finance professionals have an important role to play. They can help move the conversation beyond ambition and into the evidence, analysis and judgement needed to support credible decisions.

The risks and opportunities ahead

The next phase of the sustainability agenda will demand more from organisations than disclosure alone.

Sophie describes adaptation and resilience as "the topic-du-jour in every sustainability conversation" she is having, with organisations still developing the tools, frameworks and financial products needed to respond to physical climate risk.

For Tara, one of the biggest risks is "paper decarbonisation", where reporting races ahead of the investment needed to transition and rewire the economy. The opportunity, she argues, lies in turning transition plans into "a genuine capital allocation tool".

Russell highlights supply chain resilience as another issue deserving close attention. As businesses navigate geopolitical uncertainty, tariffs and climate-related disruption, understanding where vulnerabilities sit in global supply chains is becoming increasingly important.

These aren’t issues for sustainability specialists alone. They affect how organisations plan, invest, insure, govern and compete, and they’re increasingly central to the advice CAs are expected to provide.

Making the case in the boardroom

The discussion with our panellists also highlighted a common theme: boards are more likely to engage when sustainability is connected to decisions they already make around risk, investment, resilience and value.

Russell's advice is to "focus on evidence, materiality and business outcomes rather than labels". Sophie emphasises the importance of understanding which sustainability issues are financially material and using that insight to support better decision-making.

Tara is equally direct: "Go straight to the commercial case, not the moral one."

That doesn’t mean reducing sustainability to a financial exercise. It means recognising how sustainability increasingly influences energy costs, supply chains, customers, talent, regulation and long-term competitiveness. For CAs advising boards and leadership teams, understanding those connections is becoming an essential part of supporting good business judgement.

Hear from the people putting it into practice

Tara, Russell and Sophie bring perspectives from transition finance, institutional investment and corporate banking. Together, they'll explore how organisations can manage risk, strengthen resilience and create long-term value through sustainability.

At the ICAS Sustainability Summit 2026, they’ll explore how organisations can manage uncertainty and turn sustainable action into commercial advantage.

The ICAS Sustainability Summit 2026 takes place on 7 October at Dovecot Studios, Edinburgh, and online. The event is free for ICAS students and members.

Catch up on what Panel 2 had to say about how accountants can put sustainability at the heart of business.