Financial services firms have continued to look to bolster their boards with members who have specific skills around the ongoing drive for sustainability.

The latest EY European Financial Services Boardroom Monitor – which charts the profile, experience and skill sets of board directors across the MSCI Europe Financials Index – has found that 33% of board appointments in the year to June 2025 brought some form of sustainability expertise, compared to 23% in the twelve-month period prior. This has resulted in a two-percentage-point increase in the overall number of directors with sustainability experience, from 17% to 19% of the total population of financial services board directors over the last year.

It means the vast majority (93%) of European financial services boards now include at least one director with sustainability expertise — up from 82% in June 2024 — and 58% of financial services boards include two or more directors with this skill set.

Although C-suite experience continues to be the most in-demand attribute for new financial services board directors — 65% of appointees in the last year have C-suite experience —sustainability expertise is now one of the most in-demand skill sets.

Omar Ali, EY Global Financial Services leader, explained: “Despite political debate globally, varying regulations between markets, emerging de-regulation and reports of corporates deprioritizing 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.”

A third (33%) of appointees over the last year (June 2024 to June 2025) brought finance experience, such as a CFO or financial controller role, while 28% have backgrounds in audit or accountancy. Thirty-five percent of newly appointed board members in the same time period brought technology expertise, raising the overall director population with these skills to 25% (from 23% the year prior) — perhaps as financial services firms look to get to grips with generative artificial intelligence and ongoing tech transformation.

Looking through a gender lens, of the new appointees in the year to June 2025 with sustainability experience, 56% were women and 44% were men, resulting in a gender balance of the total director population now with sustainability experience of 52% female, 48% male. For new appointees in the year to June 2025 with C-suite experience, 34% were women and 66% were men, resulting in a one-percentage-point decline in the overall proportion of women with C-suite experience over the last year (now sitting at 63% female to 37% male). Of the new appointees in the year to June 2025 with tech experience, 45% were women and 55% men, resulting in an overall gender split now of the total director population with sustainability experience of 46% female, 54% male.

The report added sustainability expertise has become increasingly represented across all types of financial services boards. The Monitor data founds that 89% (79% this time a year ago) of wealth and asset management boards have at least one director with sustainability experience, rising to 93% (86% this time a year ago) for banking boards and 96% (76% this time a year ago) for insurance boards.

In terms of new appointments between June 2024 and June 2025, European banks have added sustainability expertise to their boards at a faster rate than insurance and asset management peers in the last year. Forty-one per cent of all new board directors to European banks brought sustainability experience in the year to June 2025 (21% this time a year ago), compared to 29% (27% this time a year ago) at insurance firms and 19% (24% this time a year ago) at wealth and asset management companies.

Italy, France and the UK led Europe in sustainability appointments over the past year, accounting for 27%, 13% and 13% of new directors with this experience, respectively. The UK led the continent for new appointments with C-suite experience, accounting for 20% of appointments in the year to June 2025, followed by France (13%) and Italy (11%). The UK also led on new appointees with technology experience, accounting for 24% of all technology appointments in the period, followed by France and Italy, each with 13%, respectively.

Gill Lofts, EY Global Sustainable Finance leader, added: “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.”