Sustainability Leaders Summit 2022: What did we learn?

Last week I had the privilege of representing Six Degrees Executive at the annual Sustainability Leaders Summit here in Melbourne. As I stood in the lift approaching the 17th floor of the RACV Club my mind was abuzz: did I remember how to work the room after 2 years? Did my hair look ok? Was I important enough to take up space with senior leaders? Would they have any vegan options? This all fell away when the door opened and I was hit with the noise and buzz of what appeared to be 250 energetic sustainability practitioners excitedly hugging, collaborating, bemoaning and generally exuding joy to be back in each other's presence.

It was an energising two days, and I was reminded of the grit, dynamism and passion of the sustainability community - but most importantly the power of collaboration. The time for radical transparency and clear action is upon us, and we won't get there (we being all humanity) without sharing and learning from our successes and our failures.

These were my key takeaways from the Summit:

It's now or never for Australia

The momentum is here; this is the moment for Australian businesses, cities, citizens and governments to transition to a circular business model. On the global stage, Australia has been amongst the most significant sustainability laggards.

Yet, we heard from some leaders that - in my view - would rival some of their most ambitious European counterparts. I often describe Australia as the Steve Bradbury of countries - hard working, and often trailing at the back of the pack but when we put our minds to it, will come out of nowhere and achieve incredible results. That commitment to change was highlighted at the Summit.

But if that commitment, those targets, that curiosity and energy isn't turned into genuine, transformative and system level action right now, then Australia risks falling even further behind.

That's not just a sad headline - we have seen over the past week that this has real consequences, and disadvantaged communities will continue to be disproportionally affected.

Progress is better than perfect

Australian businesses have traditionally been conservative with sharing information that could paint them in a less-than-perfect light. There have been good reasons for this - the constant critical media machine (I personally stopped watching the news after all of one day after relocating from Europe), the culture of snap judgements and scrutiny, and just some genuinely lagging practices that no-one would want to shout from the rooftops.

As a result, ExCos have shied away from signing off on sustainability programs until knowing that everything was aligned. Corporate announcements haven't been made until targets were 100% met.

But how to get to 100%? And what happens if you miss that? Without sharing progress, businesses miss the opportunity to learn from each other, and individuals spearheading change can be demoralised when they don't match the same glossy headlines as their peers.

One of the key themes of the conference was progress over perfect. Start with the small wins. The walk you do is better than the run you don't. Don't be afraid to innovate, take risks and fail. And above all, share your journey publicly so we can all keep learning, fast, and keep doing better. The climate crisis is accelerating, and we don't have time to all learn in a silo.

Collaboration is key

What is trying to be achieved requires a seismic shift across all systems - economic, social, policy, natural, behavioural. It was clear that we won't get there without collaboration at all levels. Be that in communities, within the sustainability profession, within and between businesses, within and across regions and countries, and particularly between leaders - who have the power to make change.

The climate crisis and diversity are interlinked

Most importantly, we must champion the voices of those who are often denied a seat at the table. People of Colour, those who are economically disadvantaged, rural communities, the queer community, those who identify as female.

It was nice to see some international keynotes, and presentations from female leaders. However the elephant remained in the room: those in the most senior positions were widely white Australian men. We need as much diversity of lived experience and thought as possible if we are to work together to achieve systems change that sticks.

Not 'why' but 'how'

The discourse around sustainable business has changed significantly during the course of the COVID-19 pandemic, for the better. Having recruited sustainability roles both before and during, the difference was pronounced. Private Equity firms and Family Offices suddenly wanted ESG experts. Every business appeared to change their mission statement to being purpose-led. Sustainability became a key topic in the Boardroom, and for customers. Chief Sustainability Officer moved into a mainstream role. Budgets for sustainability hiring soared. Reporting lines moved up. Sustainability became further entrenched in legislation, and in geographies where it wasn't, business stepped up to lead.

It is no longer acceptable to ask 'why should we be a sustainable business?'. We have moved to 'how do we become a sustainable business'?. Whilst climate change denial has not been eradicated and greenwashing is still rife, leaders must at the minimum, admit that there needs to be a plan to mitigate social and physical risks.

Data is essential

Data is the key piece of the 'how'. Another vulnerability highlighted by the COVID-10 pandemic was how little businesses knew about what was happening within their own operations, let alone within their broader supply chain. Scope 3 emissions quantification is one of the largest challenges for businesses starting their journey towards Net Zero or Net Positive. Up-to-date and truthful employment data remains a challenge for addressing human rights and labour violations. As one speaker put it "if you haven't identified modern slavery in your supply chains, then you haven't looked hard enough".

Quite simply - you can't change what you don't know.

As a recruiter I see this reflect in the way and types of roles hired. There has been a swing back towards businesses appreciating deep technical knowledge of environmental and social topics. Compelling storytelling remains important, but there is a growing scepticism of greenwashing, pulling organisations to back up their claims.

Transition to a regenerative business model to meet Net Zero and beyond

There is no sustained business without sustainable business. It is a fact that most resources that we currently use are not infinite, and those that could be are often lost out of the system. Businesses need to stop accepting any waste - whether that be of social, physical, human, intellectual or constructed capital. Our planet is a closed system, and the tides are changing on how resources are viewed.

The closing remarks of the day left us with cautious optimism, and a great sense of urgency. Delegates were ask to take away:

• Collaborate with intent and impact
• There has been enough talking; get on with the change-making
• For sustainability practitioners, the realities of commercial business are a must to get your head around
• Be comfortable in ambiguity
• Profitability sits within sustainability, not vice versa
• Remind your stakeholders of the cost of inaction, and then reminded them again and again... and again
• Remember what is happening outside. Being able to talk about sustainability initiatives in a safe environment when there is natural disaster and war is a privilege
• The current capitalist economic system is changing, unequivocally
• And finally, create value from the transition to more regenerative business models

That's a wrap! If you'd like to discuss the broader market trends in sustainable business, please reach out to myself or another member of the Safety and Sustainability team. I'll be publishing our Market Insights later this week, so make sure to follow me to be the first to hear about it.