How can you develop your leadership skills in sustainability?

If you are serving on a board it is important to first understand what the material sustainability issues are and who is tasked with oversight. The next step is identifying the knowledge level of the ESG engaged directors, and the entire board including its chair. After identifying key sustainability concerns and accountability, the board’s next step is to assess the potential impacts of these issues, both from a short- and long-term perspective.

In my view as a leader begin by establishing a profound self-awareness of how sustainability aligns with your business objectives. Define the parameters and goals with precision, acknowledging the vastness of sustainability. Employ industry benchmarks as a guiding framework for setting objectives. Utilize tools such as the B Impact Assessment, Global Reporting Initiative, or Sustainable Development Goals for comprehensive measurement and benchmarking. Following this, strategize to surpass established benchmarks, emphasizing innovation and continuous improvement. Crucially, engage your team in understanding the significance of sustainability and effectively communicate their roles in contributing to and achieving these vital objectives.

In advancing sustainability leadership, it is pivotal to transcend superficial approaches often seen in certifications and promotional activities. A critical introspection is essential – asking, "Are we genuinely sustainable?" Tailor goals to your business, ensuring relevance and achievability within your industry context. Goals must embody the SMART criteria, promoting specificity, measurability, achievability, relevance, and time-bound commitment. Engage each department in the discussion, aligning goals with their parameters. This meticulous approach ensures that your sustainability goals are not merely symbolic but serve as a robust framework for meaningful and measurable impact.

It's not necessary to design an entire program from scratch. There are many best practices, resources and tools available to you from a variety of standards development organizations, institutes and other industry bodies. These will help you benchmark your program using best practices developed by leading experts in the space. You can use this as a guideline and then customize as needed for your organization and priorities.

Diversify your approach to sustainability by exploring a range of available tools. Select the most relevant ones tailored to your industry specifics. Immerse yourself in case studies within your sector, understanding successful implementations from industry colleagues. Engage with experts and consultants to customize these best practices, ensuring they align seamlessly with your unique organizational needs. This multifaceted strategy enables a comprehensive and industry-specific integration of proven sustainability methods.

Boards might want to seek a ‘reality check’ by identifying the business’ position in key areas previously identified and assessed. These include material sustainability issues and assurance of the governance structure’s soundness. It is advisable to mandate an independent third party to provide an assessment of the current oversight processes and overall ESG preparedness. This snapshot could be used as a starting point to build the implementation plan and its monitoring framework.

Incorporate sustainability into your strategy authentically, aligning it with your vision rather than blindly following trends. Develop measurable goals and objectives stemming from this vision. Implement programs like ISO 14001 for structured alignment and continuous improvement monitoring. Ensure each department's KPIs incorporate sustainability criteria. This holistic monitoring approach, driven by genuine commitment, not only achieves initial goals but fosters continual improvement, making sustainable practices an integral part of your company's ethos.

To monitor the implementation or operationalisation of a business’ sustainability commitments, boards should employ quantitative and qualitative key performance indicators (KPIs). These can be designed to help identify any gaps or discrepancies in the business’s efforts to implement the board’s strategy. Qualitative KPIs should, further, be designed to capture the necessary evolution of the organisation’s culture, as this will underpin all transformation. Boards might want to closely and more frequently monitor the strategy and its implementation. This will detect hurdles and hidden obstacles in the organisation’s actions early on, such as red flags in client engagement, or dubious products.