According to the founder of ESG Strategy, Lee Stewart, reporting to an executive team could be the most critical juncture that could see even the most well-prepared team face a set back. In his recently launched book How To Build Sustainability Into Your Business Strategy, Stewart draws on his more than 20 years’ experience in corporate sustainability, ranging from startups to billion-dollar multinationals, to provide readers with a simple 101 guide for ESG strategies.
The following is an extract from the book that focuses on how to get past the C-suite’s natural scepticism.
Despite the diligent efforts of those presenting the information, factors beyond their control can thwart their endeavours.
Now, you might be thinking, “How does a sustainability professional do their job when the role itself can seem so contrary to the interests of the higher-ups?”
I grappled with this same question throughout my career, but over time, I learned that when engaging with executives and the board, it’s crucial to these two key facts.
“If your exec team and board is not uncomfortable when discussing sustainability, then they most likely don’t have all the facts, and someone below them is not doing their job effectively.”
“The customer’s or shareholders’ voice holds greater significance than any internal voice”.
When dealing with the execs and board on sustainability, it’s important to be
comfortable with having difficult conversations.
This is much easier said than done but there are some key tips in this chapter that will help smooth over some of the difficulties. Having an external supporting voice is one key element that helps the conversation and brings an element of reality to the table. Having a well-thought-out plan, conducting thorough research and delivering a compelling narrative supported by effective communication strategies will greatly increase the likelihood of your success. Transforming intangible aspects into measurable KPIs enables you to speak the language of your executives and board, ensuring they not only listen but also respond to your communication effectively.
How to Have a Mature Board Conversation About Potential Disasters
One common pitfall in the global green movement has been its emphasis on doom and gloom. Dire predictions, ranging from systemic collapse and mass extinctions to water shortages and societal breakdowns, although potentially accurate, can overwhelm and turn away the very decision-makers needed to address these issues. I’ve often felt like Chicken Little, the character from the children’s story who mistakenly thinks the sky is falling. This sensation can resonate deeply when every day seems to bring a new, dire prediction, making it easier for executives and boards to dismiss these warnings, as seen in incidents like the Sydney Airport Chairman’s dismissal of concerns about sea level rise at an annual general meeting.
However, any effective sustainability strategy requires a mature, rational discussion of these potential crises. Experience has taught me that painting the picture of the apocalypse seldom persuades corporate leadership. Instead, it is more productive to adopt a pragmatic, long-term approach that leads rather than dictates.
Rather than relying on sensationalist headlines, use regular board meetings to
methodically present data and insights that encourage leaders to come to their own informed conclusions that business as usual is unsustainable.
For instance, if your business heavily depends on natural resources, like water or agricultural products, highlight specific research or news about how regions are adapting to scarcity. If you’re in consumer goods, point to market research showing shifts toward more sustainable products. This strategy lays a foundation of facts, helping guide leadership toward recognising the necessity of change without resorting to fear-mongering.
Communication Proves to Be a Top Sustainability Skill
Half of the roles I’ve done have felt like I was the company’s internal public relations expert. I spent a lot of time with the communications, marketing and brand teams, working together on common ground and addressing how they need to do things differently according to the sustainability plan. It’s been a tricky thing, but it gets better over time. In the next chapter, we will talk more about communication as it relates to achieving collaboration with your peers to meet your stakeholders’ expectations.
1. Stay close to the money
I often joke to my friends that my biggest achievement in my career was keeping a job that had “sustainability” in the title when we had right-wing political leaders in.
Australia like Tony Abbott. When I worked with a company that had big contracts with their government, this was a big deal.
Looking back, it makes sense that I found success, as I had strengths in two distinct areas.
Saving the business money: I achieved this by enhancing my skills and implementing numerous energy efficiency programs, which more than justified my role. However, my greatest impact came from collaborating closely with the sales teams, particularly in supporting large bids. I strategically assessed proposals and aligned them with potential customers’ sustainability goals. In tender documents, I would look for any potential alignment in sustainability targets and strategies. For example, the prospective client may have an emission reduction target, and by using our solution, we could help them achieve it. In many instances, we offered a complimentary sustainability assessment, which provided a key point of differentiation in our sustainability approach.
2. Quantifying the results of my work
Over time, I took this collaboration further by asking the sales teams to assign a percentage value to the deal size attributable to my contributions. This ranged from a modest 2 per cent to, in some cases, a substantial 20 per cent. Throughout the year, working on numerous deals, I calculated the cumulative financial value I brought to the table. While it didn’t directly contribute to my teams revenue, this approach allowed me to demonstrate the tangible financial value of having someone with my skill set on the team.
It was a real high for me the first time I saw my words in the opening executive summary of a $100 million+ deal that exhibited how our solution could help our customer achieve their sustainability goals. Stay close to where the money comes into your business and work closely with your sales team. Collaborate and figure out how what you sell can benefit from sustainability as its differentiator. Then, develop KPIs for putting that differentiator into place so your execs and board see the positive results of embracing sustainability as quickly as possible in number form.
A portion of the proceeds from this book will fund the author’s pro-bono work in the Kingdom of Tonga. The book is available now for purchase this website.
