Breaking boundaries: embracing sustainability in the boardroom
In the rapidly changing business landscape, the role of sustainability has become core to long-term success. While many companies boast about their commitment to Environmental, Social, and Governance (ESG) principles, a closer look reveals a stark reality: most sustainability programs are falling short of their ambitious claims (Bain & Company, 2007).
To truly make a difference, businesses need to go beyond rhetoric and take concrete actions that resonate in the boardroom and reverberate throughout the organisation.
The Urgency for Change
Recent research sheds light on the pressing need for businesses to reassess their approach to sustainability. According to a study published in the journal Sustainability, businesses must accelerate and scale their social and environmental impact goals to keep pace with the rapidly changing needs and expectations of both people and the planet (Mazutis, D.; Hanly, K.; Eckardt, A. Sustainability (Is Not) in the Boardroom: Evidence and Implications of Attentional Voids. Sustainability 2022, 14, 8391.) The future of sustainability requires a proactive and integrated approach that transcends traditional boundaries.
The Role of the CSO in Driving Sustainability
For many years, sustainability has been tagged on to the roles of various senior decision makers in the boardroom; often the CMO (marketing) and/or Head of People and Culture.
However, forward-thinking leaders recognise the opportunity and responsibility to take their sustainable impact seriously.
The Chief Sustainability Officer (CSO), or Chief Impact Director (CID), has emerged as a key player in steering businesses towards a more sustainable future (The Future of the CSO, Acre) This role goes beyond mere compliance; it involves embedding sustainability into the very fabric of the organization. Chief Impact Directors are pivotal in fostering a culture of responsibility and innovation that extends from the boardroom to every corner of the company.
Why Corporate Boards Need Sustainability Experts
An article from the London School of Economics and Political Science (LSE) Business Review (LSE, 2022) emphasises the critical importance of having sustainability experts on corporate boards These experts bring unique perspectives, ensuring that the decisions made at the highest level align with the principles of sustainability. Their presence is not just symbolic; it is a strategic imperative for businesses aiming to thrive in a socially and environmentally conscious era.
Key Considerations for Business Leaders
To adapt effectively to the rapidly changing needs and expectations of stakeholders, leaders should focus on the following key considerations:
Representation in the Boardroom: Is social and environmental impact adequately represented in your boardroom?
Impact Goals and Action Setting: Have you set clear, realistic, and measurable goals and communicated your intention with your stakeholders?
Enable the organisation to deliver: Is there a robust engagement and implementation plan?
Measure Impact: How will you transparently account for and communicate your impact goals to all stakeholders?
Continuous Improvement: How will you courageously improve and develop your goals in response to externalities, and emerging challenges?
Impact on Board with UK for Good
To help businesses develop and embed Impact on Board, UK for Good offers specialised services. Whether you need an Impact Director or a mentor to a senior leader, our Impact on Board (IoB) specialists can provide the expertise and guidance necessary to navigate the complexities of sustainability.
The journey towards a sustainable and impactful future must start in the boardroom. It is a collective responsibility that requires strategic thinking, proactive measures, and a commitment to continuous and courageous improvement. By addressing these considerations head-on, UK businesses can truly become agents of positive change, leading the way towards a more sustainable and equitable world.
For more information, please contact impact@ukforgood.com.