Sustainable Leadership. Is there any other kind?

In the early nineties, I was working in Japan and had been seconded to a Japanese newspaper for a few months. I remember meeting the Regional MD of one of their offices and his team, one member of which was in charge of technology.

With a smile, the MD mentioned that the technology leader earned more than he did, because his skills were scarcer and therefore more valuable.

I was surprised - and wondered how frequently a similar scenario played out in companies in other parts of the world. Seldom, I imagined.

This organization-oriented thinking was an eye-opener for me. And this, coupled with the long-term perspective of the business leaders I met, underlined the importance of acting in the long-term interest of the organization and its stakeholders.

There has always been a need for sustainable leadership – though possibly now, more than ever.

Yet though we hear the term frequently today, wasn’t sustainable leadership always the gold standard of leadership?

Weren't, and aren't, the leaders we site as inspirations - such as JRD Tata, Wangari Maathai, Rachel Carson, Yvon Chouinard, Robert Owen, Jacinda Ardern and Paul Polman - always operating as sustainable, gold-standard leaders?

Here’s what sustainable leadership means to me:

Sustainable People

As the leader, perhaps first look at yourself and consider whether you are leading yourself in a sustainable manner.

How sustainable are you in terms of physical energy, mental wellbeing and emotional wellbeing?

• Are you a role model for energy regeneration though physical exercise, healthy eating and frequent breaks – including that big 7 or 8 hour sleep ‘break’ or do you register a deficit on your energy balance sheet?
• How well do you manage your mental energy? Do you focus, exam-style, on the important work, and switch off the unnecessary distractions and attention-destroyers?
• Do you eat in an energy-expanding or energy-sapping manner? I don’t know what works for you but typically, avoiding spikes is possibly the most effective approach.

How are you facilitating the wellbeing, growth and self-actualization of the people you lead?

• How do you use your emotional intelligence to create a climate of trust and possibility, where your feedback is given – and taken – in a constructive uplifting manner?
• Can you hand on heart say the people in your value chain are earning a living wage, operating in safe conditions, and have an opportunity to replenish their skills?
• How would you rate the consideration you give to stakeholders outside your customers, employees and investors? Would you say you’re hitting net positive on your contribution to their environment and wellbeing?

Sustainable Processes

Processes realize the intent, so what steps have you taken – and can you take – to act regeneratively?

Perhaps think about processes in terms of:

Resource efficiency

To what extent have you acted to conserve energy (and developed renewable resources) and water? How are you sourcing the raw materials for your products? Do you believe that stamping ‘recyclable’ on a plastic bottle means it will be recycled?

Lifecycle Assessment

Do you know the impact of your products and services on the environment? And how do you measure that impact? From cradle to gate, grave or cradle? In terms of emissions, are you considering Scope 1, 2 or 3?

Circular Economy

How have you designed sustainability into your products and services? Have you eliminated wasteful steps in your sourcing, production, delivery and collection of your products? How do you ensure reuse, repair, remanufacturing and recycling for your products?

These questions can be applied to you, as well as to your organization. What steps can you take to make your lifestyle more sustainable?

The average British person generates 12 tonnes of CO2e a year. The world needs to be operating at 5 tonnes of CO2e/person to avoid warming the earth beyond the Paris Agreement goal of 1.5 degrees Celsius.

Sustainable Strategy????????????????

How far have you succeeded in integrating sustainability into your business planning?

The Balanced Scorecard is a great tool for facilitating pan-organizational strategic decision-making – you can incorporate sustainability as a standalone focus area, or within the four original focus areas (customer, finance, process, learning).

The critical element of strategy development is alignment: thinking systemically, so that goals are aligned and interconnected across the organization. Yes, it sounds easy and obvious, but it’s rarely simple to achieve.

How long-term is your thinking?

Sustainable practices typically don’t deliver an immediate ROI – the investment requires a longer term commitment. The good news is that the investor powerhouses, the pension-funds, insurance companies – with support from sustainably minded stakeholders) are investing for the long-term. We’re also seeing an uptick in sustainable investing from sovereign wealth funds and endowments.

How innovative is your approach?

Strategy is innovation, in the words of Vijay Govindarajan. How well are you setting? yourself up to enable and deliver on innovation? Can you innovate in terms of your energy use, the products and services your deliver, and the way you deliver them, to achieve greater sustainability?

I was watching a PBS documentary on the oil industry. It was fascinating to realize that Exxon had been researching alternative fuel sources, such as lithium batteries, in the 1970s, but had stopped investment in the 80’s as a result of a dip in oil prices. Imagine the leadership position the company might have had if they’ve maintained that investment in innovation?

Long-term Horizon

What leadership challenges will we face in the coming decades without sustainable leadership now? ?

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For a primer on sustainability, visit the Global Reporting Initiative and the Ellen Macarthur Foundation.

Andrea Stone is an executive coach, working with leaders and their teams to drive long-term performance and success. She is an executive educator, facilitating awareness and practice of leadership skills, working with VP to CXO level leaders globally.

? Andrea Stone, Stone Leadership

Sources: How Bad Are Bananas, Mike Berners-Lee; Global Reporting Initiative; Climate Disclosure Project; Net Positive, Paul Polman and Andrew Winston