From Numbers to Impact - Communicating Your Sustainability Brand
I had the privilege of moderating a panel discussion on the pivotal role of sustainability in today’s business landscape. As we become increasingly aware of our environmental and social responsibilities, the importance of sustainability experts cannot be overstated. We were joined by Lochie Burke (Co-Founder & Co-CEO of NetNada ), Nathan Kessey (Director, Sustainability Team at KPMG ), and Harry Godber (Co-CEO of Spark Festival & Former Senior Policy Adviser to the Australian Government) for this conversation. As sustainability continues to take centre stage in business strategy, here are some of the most thought-provoking takeaways from our discussion:
1. Sustainability is Part of Every Role
"Sustainability has very quickly been becoming a part of every aspect of every organisation over the last few years, which means whether you're in finance, operations, product design, marketing, in the C-suite looking at the risk of the business, or even in procurement, it's now part of your job, whether you like it or not." – Lochie Burke
Sustainability is no longer siloed in specialized teams. It touches every department and function, meaning that all employees need to understand how environmental and social factors influence their roles. From risk management to procurement, sustainability is becoming integrated into the core operations of organizations across all sectors.
2. Lay the Groundwork for Long-Term Growth
"What can be achieved in the next 12 months? Realistically, there isn’t much you can do to mitigate climate risk in that short period. However, you must lay the groundwork now so that 10, 20, 30, or 50 years down the track, you’re setting yourself up for sustainable growth and building the transition pathways to get there." – Nathan Kessey
Sustainability is a long-term game. Businesses need to plan not just for the next quarter but for the next decade and beyond, laying the foundation for future growth while addressing climate risks.
3. Greenwashing is a Growing Risk
"Organisations need to move beyond treating this as a reporting consideration and instead adjust their business so that their core processes align with what stakeholders expect. When it comes time to make mandatory climate disclosures, it must be a fair representation of what's actually happening. That’s hugely challenging. It’s easy to say, but difficult to execute." – Nathan Kessey
The days of using sustainability as a marketing gimmick without meaningful action are over. Companies must ensure that their sustainability efforts are authentic and credible. Greenwashing risks damaging both reputation and investor confidence. As mandatory disclosures increase, businesses need to align their processes with stakeholder expectations to avoid falling into the greenwashing trap.
4. The Challenge of Scope 3 Emissions
"The biggest problem with Scope 3 reporting is it's largely based on assumptions and massive aggregated datasets that give you an assumed impact. We need to move towards more specific unit measurements for individual companies." – Lochie Burke
Scope 3 emissions, which account for the majority of a company's carbon footprint, are notoriously difficult to measure. They rely on supplier data and broad estimates that may not accurately reflect a company’s true environmental impact. Businesses need better tools and methodologies to capture precise, actionable data to manage and reduce these emissions effectively.
5. The Growing Role of Sustainability in Procurement
"I’ve lost count of the number of RFPs that now require you to substantially state your sustainability commitments. People are looking for commitments that aren't just symbolic but that are meaningful parts of the product and the way you talk about and brand your products." – Harry Godber
Sustainability is becoming a non-negotiable factor in procurement decisions. Companies are increasingly required to demonstrate not just symbolic commitments but tangible actions that align with their brand and values. This shift is changing how businesses present themselves and their products in the market.
6. Collaboration Across the Organisation is Key
"The core solution lies in collaboration across the organisation. It’s about understanding what the organisation is trying to achieve, the resources it has available, and then bringing people together to figure out how best to take the next steps. This collaboration creates a feedback loop with stakeholders, ensuring that the company’s efforts are aligned with both its goals and the expectations of those it serves." – Nathan Kessey
Sustainability is a whole-organisation effort, requiring coordination between finance, risk, compliance, and operations. The key to navigating the complexities of sustainability reporting and compliance is ensuring that every department contributes to and supports the overall strategy.
7. Investors are Paying Attention
"Investors are using a much finer-toothed comb to conduct due diligence on sustainability plans. In doing so, companies open themselves up to a larger market—not just for investment, but also for customers, particularly in corporate procurement." – Harry Godber
Sustainability disclosures are becoming a critical factor in investment decisions. Investors are looking for companies that not only meet regulatory requirements but also demonstrate a genuine commitment to sustainable practices. Companies that fail to do so risk not only regulatory penalties but also reputational damage that could deter investors and customers alike.
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8. Technology is Key, But It's Not the Only Solution
"There’s a tendency to jump straight to a technology solution, but it’s important to first understand the problem. Technology can support, but not replace, the processes and controls required to ensure accurate sustainability reporting." – Nathan Kessey
While technology can help streamline data collection and reporting, it’s not a standalone solution. Businesses need to first address their processes and internal controls before implementing tech solutions to ensure that sustainability reporting is accurate and robust.
9. A Long Journey Towards Integrated Reporting
"It’s a long journey. If we were starting from scratch, as we do when engaging clients at KPMG, we’d typically say it’s a three-year program to move from where you are now to a fully integrated view of reporting. It’s not easy, but that’s the direction we’re heading." – Nathan Kessey
The shift toward fully integrated sustainability reporting won’t happen overnight. It’s a multi-year process, requiring businesses to re-engineer their systems and ensure that data across the organisation is aligned with their long-term sustainability goals.
10. Start Early to Ensure Compliance
"You really can’t fake it—you need to start collecting data and records from the inception date, which for many companies will be the 1st of January. And if your reporting date is 31st December, that’s going to come sooner than you think. Starting early and ensuring the data is robust is really important." – Harry Godber
With new climate reporting legislation set to take effect, businesses need to start preparing now. Collecting accurate and comprehensive data from the start will be critical in ensuring that their reports meet the new standards and are ready for investor and regulator scrutiny.
11. Don’t Rest on Your Laurels
"For companies in later cohorts, or smaller companies that may grow into the earlier cohorts over the next few years, don’t rest on your laurels. As Nathan mentioned, it’s a three-year process to get your reporting systems robust, and often the data required won’t be readily available through normal business processes." – Harry Godber
Even if you're not immediately impacted by the new regulations, it's important to start building your systems and processes now. The journey to fully integrated sustainability reporting can take years, and waiting too long can leave you scrambling when it matters most.
12. Aligning Sustainability with Brand Strategy
"'What is our organisational purpose? What do our stakeholders expect from us?' Once you understand that, you can then define the role sustainability plays within that framework. This approach helps enhance your brand because it’s aligned and authentic, rather than creating something just for the sake of it." – Nathan Kessey
Sustainability needs to be authentic and aligned with a company’s core values. Companies that focus on sustainability as an integral part of their brand strategy, rather than as an afterthought, will be more successful in building trust with stakeholders.
13. Presentation Matters
"You wouldn’t submit a poorly typeset AFSL audit to ASIC in a Word document, so why would you treat another type of reporting any differently, especially when there are equal consequences for failing to meet the standards? Government and regulatory bodies are made up of people—which can be hard to remember sometimes—but the people assessing your reports are viewing your company from an outsider’s perspective. It becomes a lot easier to take control of the narrative if your branding is consistent, your design is polished, and the way you communicate your company’s values aligns with what you’re reporting on." – Harry Godber
How you present your sustainability efforts is just as important as the efforts themselves. A strong and consistent brand message enhances the credibility of sustainability efforts. Ensuring your reports are clear, well-designed, and aligned with your brand strengthens credibility with regulators, investors, and other stakeholders.
As sustainability becomes a critical function in every organisation, it's essential to recognise its integration across all business roles and industries. The evolving regulatory landscape, particularly with mandated sustainability reporting, presents both challenges and opportunities. From Scope 3 emissions to the complexities of greenwashing, the need for transparency, collaboration, and the right skill sets is clearer than ever. Organisations must leverage technology, ensure robust stakeholder engagement, and prepare for a future where sustainability reporting is seamlessly embedded into business strategy. The path forward is not just about compliance—it's about driving meaningful change and long-term value.
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