What a 450-year-old house can teach directors about sustainability

A house dating back to the 16th century isn’t where most conversations about corporate sustainability begin. But for Robin Mellon, it was the perfect way to illustrate a point.

The Chief Executive of Better Sydney and Deputy Chair of the UN Global Compact Network Australia joined IoD and Chapter Zero New Zealand Chair Ross Buckley CMInstD for a recent Chapter Zero New Zealand session. He shared insights from a career he describes as “anything but linear”, spanning property, sustainability advisory and leadership roles across industry collaborations.

The self-confessed ‘property nerd’ didn’t open with a framework or a forecast, but with a memory of growing up in southeast England in a house built more than 450 years ago.   

“It’s still doing the job it was built to do,” he said. “It was my first definition of sustainability.”  

He suggests that resilience is not about preventing shocks and stresses, but a mindset of shifting from reactive crisis management to proactive adaptation. He pointed to a high-rise building near the Brisbane River designed to be repeatedly flooded. Pumps in the carpark can quickly clear water and the electrical systems are safe on the eighth floor.   

It set the tone for a discussion that challenged directors to think beyond short-term cycles and embed sustainability into long-term strategy.  

Diversity of thinking is foundational to governance  

Mellon was clear that boards need diversity for strong decision-making.  

“I honestly believe that one of the foundations of good governance is being able to bring different perspectives to the table.”  

In practice, that means more than demographic diversity. It requires a range of experience, sector exposure and ways of thinking, particularly when navigating complex issues like climate risk, supply chains and human rights.  

Innovation, he noted, rarely comes from the same people sitting in a room thinking hard about the same topics. It emerges when different perspectives are brought together.  

For boards, diversity is not optional. It is critical to understanding risk and opportunity in a rapidly changing environment.  

Turbulence is not new, but responses must evolve  

While many organisations frame today’s environment as uniquely volatile, Mellon offered a reframing:  change has always been constant.  

From pandemics to wars to economic shocks, history is defined by disruption. What has changed is the speed of information and how it shapes perception.  

“If we remind ourselves that change is constant, we may spend less time trying to keep everything the same and plan for evolution and change.”  

Sustaining direction over time 

Mellon’s central message to directors was clear: “Hold our line. We need to sustain our direction.” 

Too often, organisations shift priorities in response to external pressures such as economic cycles, geopolitical shifts or political change. While strategies should evolve, constant reinvention creates confusion and undermines progress. He warned against the tendency to treat sustainability as a series of short-term initiatives.   

“The phrase ‘we’ve launched our sustainability agenda for 2026’ fills me with fear. It’ll only sustain you through one year.”  

Instead, boards should focus on long-term strategy, consistent direction and clear alignment between sustainability and core business. Embedding sustainability into every function, rather than isolating it, is essential.  

Modern slavery: a hidden but material risk  

Mellon identified modern slavery as a significant and under-recognised risk. An estimated 49.6 million people are affected globally, including around 8,000 in New Zealand. 

“Modern slavery distorts markets and undermines consumer confidence,” he said.  

Directors need to understand where risks sit within their operations and supply chains. Mellon pointed to three key areas:  

• • High-risk business models (complex outsourcing and subcontracting)  
  • High-risk geographies (weak rule of law, conflict, displacement)  
  • High-risk sectors (labour-intensive industries and raw materials)  

Supply chains: the real frontier  

Many organisations, he noted, still lack visibility beyond their immediate suppliers. Yet supply chains represent the greatest concentration of risk and opportunity:  

Indirect emissions can be more than 20 times higher than direct emissions. Disruptions can cost millions per day.  

Mellon advocated for greater collaboration with suppliers, rather than simply imposing requirements.  

“If our supply chains don't know or understand what decarbonisation or modern slavery objectives you're pursuing, they're unlikely to be able to support you with them.”  

This includes building capability, setting expectations over time and aligning procurement with sustainability goals.  

Long-term thinking in a short-term world  

ASB Executive General Manager of Business Banking, Bec James, acknowledged the landscape for boards is shifting.   

“Meaningful oversight isn't just about a compliance checklist. It's about having the courage to look at the horizon and ask, are we building organisations that are merely following the rules or that are actually resilient?”  

Working to align with the United Nations Guiding Principles on Business and Human Rights is important. 

“We are committed to respecting human rights right across our business,” said ASB Senior Manager Sustainability Lauren Bowerman. “Whether that’s as an employer, a provider of banking products and services, a procurer of goods and services or as a supporter of the community.” 

Ultimately, Mellon’s message was both simple and challenging. In a world that feels increasingly complex and fast-moving, the role of directors is not to chase every change but to understand which ones matter, bring the right perspectives to the table and stay the course.  

Sustainability, at its core, is not about reacting to the moment. It is about building something that lasts.