Navigating the complexities of sustainability leadership demands a multifaceted approach, writes Catherine Duggan
More companies are grappling with a rising regulatory burden and heightened stakeholder expectations regarding sustainability, presenting the need for a captain to lead the team.
Here is a selection of the components that can help make this role successful.
1. Knowledge of the business
The impacts, risks and opportunities sustainability presents for each business are unique. Understanding sustainability, along with intimate knowledge of your business operations, stakeholders and future strategic plans, is critical to ensuring the successful integration of the sustainability agenda.
2. Commercial mindset
Perhaps more than other disciplines, sustainability tends to attract people who are passionate about the topic and driven by the need to be change-makers.
While enthusiasm is certainly necessary, particularly on more challenging days, the ability to consider and incorporate commercial aspects into the wider conversation can prove more effective than passion alone.
3. Risk management
While sustainability may be a developing area of expertise in companies, risk management is not.
The risk posed by the transition – or failure to transition – to a more sustainable economy can and should be considered through existing risk management processes, enhanced skill sets and frameworks.
Being familiar with the vocabulary and the approach that is being taken can help with the incorporation of sustainability considerations.
4. Communication management
Many of the sustainability regulations that are being introduced focus on disclosing sustainability-related information to facilitate stakeholder decision-making. The implications of these disclosures must be understood in the wider context of any supervisory oversight.
In addition, consistency of investor messaging and alignment with previous external disclosures, public commitments and marketing campaigns are crucial factors for the effective management of external communications.
5. Stakeholder management
Getting internal stakeholders onside is the most fundamental skill required to develop and deliver a credible sustainability programme.
The ultimate goal of a sustainability function is that it should become business as usual, part of everyone’s day job. Until that point, support is required from all parts of the business at a time when resources are often already at capacity.
The ability to tailor messaging to specific functions, outlining the drivers, risks, opportunities and executive support, is critical.
6. Change management
All parts of the business will eventually feel the impact of sustainability through the implementation of a new strategy, regulation, processes or responsibilities.
Agnostic of sustainability, change management is required to embed this level of transformation and support into the culture of an organisation.
7. Resilience
While sustainability aims to deliver long-term resilience for people, the planet and profit, a degree of personal resilience is required to chart the path.
In a fluid regulatory environment, an organised and curious mind is needed to develop best practices. A support network is also important to ensure the workload is shared.
Building a sustainable future together
While the above list may seem unrealistic, it’s important to emphasise sustainability’s ‘team’ nature and the need for support from across the organisation.
Identifying a resource proficient in all of the skills outlined above is a challenge. Securing someone with working knowledge of some or all of these areas – and who can upskill – is more achievable.
Few people today began their career with the intention of becoming a sustainability professional, but there is now a growing community forging a new path for their companies, with the aim of highlighting the reality that we are all in the same boat and the water is rising.
Catherine Duggan is Director of Sustainability at Grant Thornton
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