Sustainability skills surge in European boardrooms, EY finds

Nearly every major European financial services board now includes directors with sustainability expertise, EY research shows, as firms balance demand for ESG credentials with C-suite and technology skills amid shifting political and regulatory pressures

European financial services firms have sharply increased the number of directors with sustainability expertise on their boards, according to EY’s latest European Financial Services Boardroom Monitor.

The report, which tracks the experience of more than 1,000 board members across 89 listed firms, shows that 93 per cent of banks, insurers and asset managers now have at least one director with sustainability credentials, up from 82 per cent a year ago. More than half (58 per cent) now have two or more such directors.

One in three (33 per cent) of all board appointments made in the year to June 2025 brought sustainability experience, up from 23 per cent the year before. That has lifted the overall proportion of directors with such expertise from 17 per cent to 19 per cent.

Omar Ali, EY Global Financial Services Leader, said: “Despite political debate globally, varying regulations between markets, emerging de-regulation and reports of corporates deprioritising ESG, climate change remains a critical systemic risk across the world.

“European financial firms are proactively safeguarding their operations by appointing directors with sustainability expertise to navigate this growing challenge — and opportunity. Mitigating climate risk and investing in the transition is now both a fiduciary duty and a business imperative, which requires educating staff, developing new products to support clients, and alignment and accountability across all members of the board and management.”

C-suite experience, however, remains the most sought-after attribute. Sixty-five per cent of new appointees had held senior executive roles, compared with 33 per cent with finance backgrounds and 28 per cent with audit or accountancy expertise. Thirty-five per cent brought technology experience, raising the overall number of directors with such skills to 25 per cent as firms confront artificial intelligence and digital transformation.

Italian firms appointed the highest proportion of directors with sustainability experience over the past year, followed by those in France and the UK. British firms led in C-suite and technology appointments, accounting for 20 per cent and 24 per cent of Europe’s totals respectively.

Across sectors, insurers were the most likely to have sustainability skills at board level, with 96 per cent of boards including at least one such director, up from 76 per cent a year ago. That compared with 93 per cent of banking boards and 89 per cent of wealth and asset management boards.

Gill Lofts, EY Global Sustainable Finance Leader, said: “Financial services firms are experiencing growing pressure from investors, customers and employees to become more sustainable. But it’s not just about responding to pressure; there is commercial benefit to be found from strategically integrating sustainability into business operations and across the value chain. Research shows that when sustainability is built in, the outlook for business confidence improves, innovation rises, and financial performance outpaces expectations.

“As the climate crisis deepens — challenging long-term profitable growth — it is important that sustainability isn’t siloed to a single member but championed by the entire board in every discussion and decision. The recent pace of appointing board members with sustainable credentials shows that Europe’s financial firms are acting decisively to broaden expertise and accountability at the top.”

The report also highlights the gender balance among new directors. Women made up 56 per cent of those bringing sustainability experience in the past year, while men accounted for 44 per cent. Overall, women now make up 52 per cent of directors with sustainability credentials.

READ MORE: New research on RPTs has found an increased female presence on the board results in more ethical outcomes, writes Haithem Nagati of Emlyon Business School. 

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