Effective Corporate Sustainability. Are You Missing the Essentials?

In today's dynamic business world, Corporate Sustainability has evolved beyond lofty aspirations to become a robust management model.

While each industry and company has its unique characteristics, the fundamental elements of this model remain consistent, as do the common challenges faced in integrating it into an organization.

But amidst the ever-changing legislative landscape, contextual shifts, and the emergence of new reporting frameworks, have you ever wondered if your company is truly grasping the fundamental elements? Are you confident that your Corporate Sustainability Model is not just a checkbox exercise, but a coherent and effective roadmap?

What if I told you that some businesses might inadvertently overlook critical aspects that could make or break their sustainability journey? According to?this article?from the prestigious consulting firm?Bain

only?4% of sustainability initiatives meet or exceed expected results. And,?in 47% of cases less than half of the objectives set were achieved.?

The article also explains that, overall, only 12% of change efforts in organizations achieve the desired results. It's not a significantly better outcome, but it's three times more successful.

From all of this, we can draw the following conclusions:

1. Cultural change toward Corporate Sustainability is especially complex.
2. If you don't do something different from the majority, you're statistically bound to fail. Or, at least, to waste resources.

And let me tell you something. Corporate Sustainability does not come cheap. If we consider the dedication of human capital in all the tasks involved (strategy, reporting, execution, supervision, ...), the execution of the action plan (resource efficiency measures, changes in employee management, training, etc.) and external advice (analysis, methodologies, strategies, communication campaigns, etc.)

the total cost can vary between 500,000 and several million euros per year depending on the size of the organisation and its ambition.

What is the magic secret to turning this effort into results and maximising the ROI of the process?

I am sorry to tell you that there is no unique recipe. The solution will be different depending on your business situation, purpose, level of ambition, etc.

However, as they say, having a good diagnosis is half the solution.

As a Corporate Sustainability Advisor, I often observe how my clients get lost in the complexities and alphabet soup of sustainability and lose sight of what is important.

The key is to have a clear goal and ask the right questions about each of the fundamental pillars of sustainability to ensure effectivity on the whole system.

1. Leadership and Governance - Having the right people

Your primary goal: to forge a leadership that understands the context, requirements and benefits of Corporate Sustainability and takes responsibility for the transformation process.

Your key questions:

• Is our leadership committed and actively involved in sustainability efforts?
• Do our sustainability executives possess relevant expertise and knowledge?
• Is there transparent decision-making and accountability for sustainability performance?

2. Strategy - Know where you are going, why and how

Your primary goal: to have a clear purpose and objectives that reflect ambition

and realism and are perfectly aligned with the vision for the future of

the business.

Your key questions:

• Are our sustainability goals ambitious and achievable?
• Do we have a clear roadmap for implementing our sustainability strategy?
• Is our strategy focused on long-term value creation?

3. Implementation - Transforming strategy into reality

Your primary goal: to develope a smooth and flexible execution process that ensures minimal divergence between business vision and reality.

Your key questions:

• Are we effectively allocating resources to sustainability initiatives?
• Do we have clear responsibility and accountability for sustainability actions?
• Are we monitoring progress and impact of sustainability projects?

4. Monitoring and reporting - Having the right information

Your primary goal: To develop a flow of information that responds to complex legal requirements, the demands of key stakeholders and the internal needs of the organisation.

Your key questions:

• Are our sustainability reports comprehensive?
• Do we use sustainability data for decision-making and improvement?
• Are our reporting efforts leading to enhanced stakeholder trust and credibility?

5. Engagement - Effectively connecting business with stakeholders

Your primary goal: A relationship model that brings the business closer to its key stakeholders and establishes a relationship of trust and collaboration.

Your key questions:

• Do we have effective mechanisms for addressing stakeholder concerns and feedback?
• Is there a systematic approach to managing stakeholder relationships?
• Are we engaging employees in sustainability initiatives and goals?

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Remember. In an increasingly complex landscape, going back to the basics will provide you with the clarity you need. Corporate sustainability isn't just a destination; it's a?continuous journey of improvement.