Achieve Sustainability Goals Through Business Results

Sustainability leaders face growing pressure to meet ambitious corporate goals that benefit both society and the environment. However, the most successful Chief Sustainability Officers (CSOs) recognize that the path to achieving these goals is rooted in demonstrating sustainable business results—projects that drive both business profits and environmental impact.?

In today’s competitive business landscape, aligning sustainability investments with measurable financial outcomes is not just a best practice; it’s a necessity to secure the resources, buy-in, and long-term support required for success.?

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Connecting Sustainability Investments to Business Impact?

Sustainability efforts inherently aim to reduce a company’s environmental footprint, benefiting the greater societal good. Yet, some corporate leaders remain hesitant to tie financial outcomes to these initiatives. This disconnect often stems from a lack of clarity around what success looks like for both business and environmental objectives.?

The key to bridging this gap lies in defining sustainable business targets at the project level, which serve as tangible steps toward overarching corporate sustainability goals. Breaking down these large-scale ambitions into smaller, actionable targets provides a roadmap for leaders and their teams, enabling them to track progress and forecast outcomes effectively.?

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The Power of Clear, Actionable Project Targets?

A “bottom-up” approach to sustainability helps align individual project results with broader corporate strategies. By assigning SMART goals (Specific, Measurable, Achievable, Relevant, Time-bound) to each project, teams gain clarity on expectations and accountability.?

This approach allows leaders to:?

• Track actual-to-target performance.?

• Identify and close gaps in plans vs. outcomes.?

• Forecast resource needs and prioritize high-impact initiatives.?

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CNH has embedded sustainability into its operations through the “CNH Industrial Business System,” a next-level lean approach designed to enhance agility and focus on customer needs. This strategy targets carbon neutrality at its facilities while improving product energy efficiency. By setting clear, actionable goals, CNH achieved a 29% reduction in CO? emissions at its manufacturing sites by 2023—all while maintaining profitability. Crucially, the company reinforced its commitment by linking 20% of leadership variable compensation to sustainability goals, aligning individual incentives with the company’s sustainable business objectives. This ensures the strategy is more than just rhetoric—it drives measurable impact and accountability.?

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Targets That Drive Sustainable Business Results?

To achieve success, each sustainability project should set and track the following specific targets:?

1. Increase in Net Operating Income??

1. Clear return on investment?and Payback Period??

1. Clear Targets via SMART goals and Actuals??

1. Clear Link to Employees' Work??

1. Clear Link to Employees' Environmental Impact??

1. Increase in Company Business Model Sustainability??

1. Increase in Company Long-Term Value, and??

1. Increase in Long-Term Stakeholder Value.?

When teams deliver on these targets, they contribute to greening their company’s bottom line.?

A notable example is Ford Motor Company’s 2023 Integrated Sustainability and Financial Report, branded as the “Road to Better Plan.” This strategy is reinforced by Ford’s impactful sustainability product launches, including the F-150 Lightning and Mustang Mach-E, which seamlessly integrate financial and environmental objectives. By shifting toward electric vehicles (EVs), Ford not only advances its commitment to reducing greenhouse gas emissions but also capitalizes on the growing demand for EVs, driving profitability in a rapidly expanding market segment.?

Similarly, in the food and beverage sector, PepsiCo has made significant strides by linking sustainable agriculture practices to business outcomes. Through its Positive Agriculture initiative, PepsiCo reduced water usage in high-risk areas by 18% while simultaneously cutting costs in its supply chain.?

Sequencing and Prioritizing Projects?

Sustainability project investments must be prioritized, sequenced, and timed to deliver maximum impact. For instance, CNH’s phased approach begins with operational efficiencies, like reducing waste and energy usage in its facilities, before moving on to product innovations such as alternative fuel machinery. This sequencing ensures consistent progress while balancing short-term wins with long-term innovation.?

By aligning individual initiatives with company-wide goals, CSOs can create a portfolio of projects that collectively drive progress, from reducing carbon emissions to increasing resource efficiency.?

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Building a Greener Bottom Line?

Delivering measurable sustainable business results is the cornerstone of a successful corporate sustainability strategy. By aligning project goals with both financial and environmental metrics, CSOs and their teams demonstrate the tangible value of sustainability initiatives to stakeholders.?

This dual focus on profits and impact not only accelerates progress toward sustainability goals but also cements sustainability as a core business driver. By leading with data-driven insights and clear outcomes, sustainability leaders can ensure their organizations thrive in the transition to a greener economy.?

Key Takeaways for CSOs:?

• Tie sustainability projects to financial outcomes to gain executive buy-in.?

• Define SMART goals and track project-level performance.?

• Sequence and prioritize initiatives for maximum ROI and impact.?

• Focus on long-term value creation for all stakeholders.?

In the journey toward a greener bottom line, sustainable business results are not just a milestone—they are the foundation for enduring success.?