For many companies, 2024 presents a pivotal moment to revisit their sustainability and ESG strategies, refreshing goals and targets for 2030. This year offers a crucial window to assess current positions, consult stakeholders, and engage business partners to enhance impact and performance.
GlobeScan hosted a thought-provoking discussion with top sustainability executives from Anglo American, Sun Life, and Unilever, providing insights into best practices for updating sustainability strategies. Here are the key takeaways:
Understand How Your Business Context Has Changed
Change of Pace, Uncertainty, and Polarization:
In today’s environment of shifting political dynamics, geopolitical uncertainty, and rising social polarization, there is a heightened urgency for addressing sustainability issues. GlobeScan’s annual Radar survey indicates that 63% of people globally now view climate change as “very serious,” a sharp increase since 2014.
Scrutiny and Mounting Pressure:
Stronger regulatory norms, mandatory reporting, and growing stakeholder expectations are pushing companies to higher standards. Transparency about objectives, performance, and potential shortfalls is essential for building trust.
Increased Complexity:
The sustainability function has matured in complexity. Organizations that embed sustainability within their core business processes not only stand out but also create opportunities for innovation in products, services, and processes.
“It is a good challenge to make sure that what we disclose is legitimate and grounded in the core of what our business does.”
- Alanna Boyd, Senior Vice President and Chief Sustainability Officer, Sun Life Financial
Less Conversation. More Action!
From Aspiration to Execution Mode:
The past decade has shifted from setting large goals to implementing clear pathways and integrating sustainability across all business functions.
Know What Matters:
Identifying areas of material importance and understanding where the business can have the biggest impact is key. This involves designing achievable targets with clear metrics and mitigating the biggest risks.
Make it Tangible and Break it Down:
Embedding sustainability objectives within a step-by-step journey with clear business plans, interim milestones, and dedicated resources is critical. Breaking long-term goals into smaller targets can ensure continuity despite changing environments and resources.
Focus on People
Update Your Skillsets:
As sustainability becomes more complex, skillsets must evolve. Continuous training and talent retention are vital for maintaining high sustainability ambitions.
Bring in Expertise:
Engaging external technical expertise to keep up with shifting contexts and shaping operational decision-making can significantly impact sustainability efforts.
“Bringing in deep specific issue expertise into our operational teams on a range of environmental and social topics has made a big difference.”
- Katie Fergusson, Group Head, Sustainability, Anglo American
Collaboration and Ownership:
Sustainability thrives through accountability and daily implementation. Internal business ownership and cross-function collaboration are critical for achieving concrete goals.
Listen and Refresh
Collaborate and Listen:
Deep engagement with stakeholders is essential to understand achievements, necessary adjustments, and future directions. Trust in companies lags behind NGOs and academia, making collaboration vital for driving collective impact.
“Make sure when you make decisions and develop a strategy that you are listening to your stakeholders.”
- Rebecca Marmot, Chief Sustainability Officer, Unilever
Refresh, Refresh, Refresh:
Business goals face competing priorities and evolving environments. Leading organizations integrate sustainability into governance models, creating regular feedback loops and strong accountability strategies.
Conclusion
2024 is a year to reassess and update sustainability strategies, focusing on understanding the changed business context, moving from aspiration to execution, enhancing skillsets, and actively engaging with stakeholders. By following these best practices, companies can enhance their impact and performance, driving meaningful change towards 2030 goals.
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