Corporate Sustainability Programs: Progress and Challenges
Corporate sustainability programs have become increasingly important for businesses, offering numerous benefits such as reduced carbon footprints, improved brand reputation, and increased employee retention. These programs can ultimately drive long-term value for organizations.
A recent report by The Conference Board, however, reveals that while some progress has been made in integrating sustainability, many companies have an opportunity to better reap these benefits through further development of their programs. Only 31% of sustainability executives surveyed reported that their organizations have fully implemented corporate sustainability programs. 48% are in the mid-stage of maturity, while 21% are in the early stages of their sustainability journey.
The report also sheds light on factors that may be affecting the progress of these programs. According to 60% of sustainability executives at large U.S. companies, organizing and implementing their sustainability strategies is their primary challenge. Other challenges include embedding sustainability into the corporate culture and effectively communicating their sustainability story to various stakeholders.
“Creating the appropriate structure to effectively integrate the company’s sustainability strategy into its operations, products, and services – while coordinating efforts across functions – poses a significant challenge for chief sustainability officers (CSOs). Successful sustainability transformation requires a well-defined plan of action that not only sets clear goals but also outlines the strategy and means to achieve them,” said , Senior Researcher at The Conference Board ESG Center and author of the report.
The report provides insights for CSOs and the C-suite to navigate the organizational challenges associated with their companies’ sustainability transformations. The findings are based on a survey of over 100 sustainability leaders, primarily chief sustainability officers and executives with equivalent responsibilities, at predominantly large U.S. companies. The insights are also informed by discussions with sustainability executives on their evolving roles, their organization’s sustainability programs, and the effectiveness of their teams and steering committees.
Additional insights include:
– Organizations should assess both the current and future demands on CSOs and incorporate these assessments into strategic planning. They should also secure support from internal “allies” from other departments or functions to reduce CSOs’ overall workload. By doing so, companies can keep CSOs focused on the most critical aspects of their sustainability transformation, such as executing high-priority strategies and creating value.
– As the demands on sustainability teams continue to grow, it’s essential for sustainability departments to prioritize upskilling as part of their employee development programs. Equipping employees with new or advanced skills, such as sustainable supply chain management and technologies for optimizing sustainability reporting, will enhance the organization’s sustainability capabilities and performance.
The Conference Board is a member-driven think tank that provides Trusted Insights for What’s Ahead. Founded in 1916, it is a non-partisan, not-for-profit organization with 501 (c) (3) tax-exempt status in the United States.
