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Five ways to integrate sustainability into the business

Integrating sustainability into the business can be challenging, but there are ways to help achieve success.


In brief

  • It is important for organizations to remain focused on sustainability as it is good for both the environment and the business. 
  • To help embed sustainability in the business, the board and management team must be aligned on sustainability and see it as a collective responsibility. 
  • Other key actions include educating employees, securing the right funding and investing in the right technologies. 

Earlier this year, the EU announced the Omnibus Simplification Package on sustainability, which includes delaying implementation of the Corporate Sustainability Reporting Directive and the Corporate Due Diligence Directive. 

A closer examination of the package highlights the EU’s recognition that sustainability goes beyond mere reporting and it seeks to steer companies to focus on the actual measures that can help reduce carbon emissions. 

Many organizations remain focused on sustainability — be it due to regulatory obligations or otherwise — because sustainability is not just good for the environment but also for business. Many have also pledged sustainability targets or reinforced their commitment to net zero. 

This is not surprising. According to the latest EY Institutional Investor Survey, more than half of the investors surveyed said the impact of climate change would affect their investment strategies.

The EY organization started its sustainability journey in FY21 with a commitment to greenhouse gas (GHG) emissions reduction across the EY network. This shaped a seven-point plan to drive decisions, investment and focus throughout the organization targeting science-aligned decarbonization, skills development and client service transformation. Building on progress made over the years, the organization evolved its carbon ambition in late 2024 to include a near-term target to halve emissions by FY30 and deep, sustained emissions reductions over time to achieve net zero by FY50 (90% GHG emissions reduction), both against an FY19 baseline.

The sustainability journey over several years has shown that integrating sustainability successfully into the business can yield better business and customer outcomes. However, this is not an easy journey. Here are five ways that companies can embed sustainability in their business.

1. Ensure that the board and management are aligned on sustainability

The sustainability agenda is being reshaped by global dynamics, and companies must use this opportunity to reshape their own approaches. This will be effective only if boards and management teams agree.

Using a “value bridge” framework can help drive more productive conversations between boards and management teams. The exercise revolves around having a factual, data-led and industry-focused conversation based on a risk analysis, which can help executives stress-test and do scenario planning. Using a structured framework can facilitate better discussions and help ensure progress. 

For example, the board can work with the management team to understand which sustainability-related risks and opportunities exist and how these can be levers for transforming the organization’s business model. They may also wish to build capacity in sustainability so that board members develop the skill sets to ask deep questions around sustainability matters. These may include planetary boundaries, the intersection of socioeconomic and geo-economic crises, and human-centered issues.

2. Stop thinking sustainability is someone else’s job

A major problem with not integrating sustainability into the wider business strategy is that it creates silos that are hard to break. To integrate sustainability into the business means that all board members — not just one leader — would need to take responsibility for sustainability issues.  

The board is aligned on sustainability priorities in many companies that successfully integrated sustainability into the business. Such companies are significantly more collaborative than the rest, which could have contributed to their better overall business outcomes.

It is crucial for all board members to take responsibility for sustainability issues to effectively integrate sustainability into the business.

3. Make sure every function understands the business benefits of sustainability

 

Knowing what one needs to do to integrate sustainability into the business is one thing, but knowing how to do it is another. That’s why skills are so important. Hence, implementing training that helps employees outside the direct sustainability remit understand what they need to do and how to do it is important.

 

4. Encourage integration by getting the right finance in place


Sustainability won’t be integrated into the business without the right funding. It requires investment from the company to ensure close links between people and projects.

 

Companies that succeeded in integrating sustainability reported that they were well supported with adequate finances from the business and effective in approving both capital and operational expenditures. This highlights that full integration is possible with the right funds.

5. Invest in technology programs that support delivery of an integrated strategy

Companies can’t meet sustainability goals without the right technologies. Technology can be a great enabler for companies to collect more reliable data, manage performance better, monitor their progress on sustainability and commercial metrics more effectively and ultimately make more informed business decisions, including strategic investments and capital allocations. Technology can also be an accelerator for innovation and collaboration across the value chains.

Amid the shifting policy landscape and stakeholder demands, incorporating sustainability into the business is an imperative today. By aligning leadership, fostering collaboration, educating the workforce, securing funding and leveraging technology, companies can create a resilient and responsible business model that creates long-term value for both the organization and the environment.

Summary

Many organizations recognize that sustainability is beneficial for both the environment and the business. Key ways to integrate sustainability into the business include ensuring that the board is aligned with the management team on sustainability, fostering a mindset among all board members that sustainability is a collective responsibility and educating employees. Securing the right funding and investing in the right technologies are other key actions.

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