Value-led sustainability turns sustainability into a business, as well as a moral, imperative. Many companies that embrace value-led sustainability increase their earnings, and therefore their total value. These companies have sustainability embedded within the organisation’s strategy and have a business plan to support it; they see sustainability as an opportunity to find new customers and increase revenue and market share; and they have clearly articulated the value of sustainability to internal and external stakeholders. Those companies that do value-led sustainability best, seek to imbue sustainability in their culture and principles.
Unfortunately, there appears to be a low level of awareness of the opportunities on offer. Less than half of the organisations surveyed for the EY State of Sustainability report say they regularly assess current and emerging sustainability-related risks and opportunities. That lack of awareness means that sustainability actions and strategies are unlikely to add meaningful value to the business.
Achieving superior sustainability performance is not as great a challenge as many people might think. The approach required is nothing new. It has been used for many years in Lean organisations. The same approach of questioning why everything is done and empowering everyone in the organisations to look for improvements in every aspect of what they do will deliver immediate and lasting sustainability gains.
That requires accurate and verifiable sustainability metrics. What gets measured gets done but, in this instance, there is a dearth of such metrics. While 62% of organisations say they have management systems in place to record sustainability-related data, less than half (46%) say their sustainability reporting is aligned to recognised frameworks and standards.
Employee buy-in is another prerequisite for value-led sustainability. Without employees at all levels embracing sustainability, understanding the targets and their importance, and believing in the organisation’s commitment to it, the objectives will be almost impossible to achieve.
One third (33%) of respondents claim to have a sustainability-related employee incentive scheme in place. That low figure may represent an exaggeration of the true position as there is likely to be some confusion with employee benefits such as the Bike to Work scheme. This presents a huge opportunity for organisations to leverage a powerful cohort, who will be pivotal to the success of their sustainability efforts over the coming years as we approach 2030 and then later 2050 sustainability targets.
Overall, the findings contained in the EY State of Sustainability 2021 suggest that the majority of Irish organisations could be missing the point when it comes to action on sustainability.
The trajectory that should be followed is an acknowledgement of the scale of the crisis, accountability and responsibility at an individual level (no matter the position in the organisation), and a commitment to take real action. Organisations that fail to take a proactive approach to the issue and embrace value-led sustainability will find themselves struggling in the wake of competitors who do.
It is not too late for Irish companies to share in the rewards and opportunities posed by the sustainability transformation ahead, but time is running short both for them and the planet.
Summary
Many organisations in Ireland demonstrate a compliance-led mindset when it comes to sustainability, and overlooking the opportunities presented by value-led sustainability.
