[naomi.sleator]

I think board readiness is specific to individual companies and how involved the board usually is with daily business operations. Some allow management to take control, taking a passive, backseat role, while others might be more hands-on.

I was at a discussion a few weeks ago about board buy-in and one of the conclusions many came to was the need to assign responsibilities. What is the board’s role within the company’s sustainability strategy? This defined objective might make it easier to obtain board buy-in.

Another point raised was that nobody wanted to be held accountable for failures such as the non-completion of sustainability targets. This in turn would create a blame-game culture, which depending on the severity of the situation, may result in a firmly-suggested resignation.

Overall, a clear and coherent strategy might help with board buy-in, pointing out the benefits such as those you mentioned previously-IROs, value creation and of course, the bottom line and ROI. It might also require a slower transition rather than a sudden about-turn in order to limit disruption, however this might be hard given the fast-approaching CSRD regulations.

What are your thoughts?

[naomi.sleator]

Yes, really interesting, thank you. I suppose that given the emphasis on a long-term strategy, an essential factor for implementing these sustainable practices, that larger companies may not have, is board buy-in. Would you agree?

[naomi.sleator]

Thank you very much, this is really insightful. The point you made about using CSRD to highlight value creation opportunities was particularly interesting.

Following on from your response:

A short-term problem for many SMEs is the cost of compliance. Many also do not have designated staff to take care of the reporting. How do you think we can better support such companies to facilitate this process, so that they too can experience this value creation?

[naomi.sleator]

As sustainability professionals, we have a responsibility to be part of the solution. Our commitment to sustainability is not just a job requirement; it’s a belief in the work we do. Research shows that professionals who genuinely believe in the principles they advocate are more effective in their roles. Therefore, we are inherently part of the solution because we are the experts in this field.

However, we must be mindful of how we discuss large corporations. These companies often find themselves constrained by the decisions of policymakers and the financial pressures exerted by the world’s wealth holders. They need to adapt, and while their journey towards sustainability might seem slow, the mindset shift within these organizations is real and filled with potential for positive change. In our work, we meet individuals from these companies every day. Even if the boards are not yet convinced about the need for change, there are many on the ground who understand and advocate for it. This change is a systemic one, requiring a fundamental shift in how we think and operate. Our role is to help these companies find and implement solutions, showcasing the hope that sustainability brings.

Corporate social responsibility (CSR) must become a core value embedded within companies to shift their cultures towards sustainability. Change is a gradual process, and by taking one step at a time, we can foster a mindset change. Adopting a systems thinking approach, as highlighted by Donella Meadows in “Leverage Points: Places to Intervene in a System,” (https://donellameadows.org/archives/leverage-points-places-to-intervene-in-a-system/) we need to alter the goals and underlying assumptions of our current systems. This approach will enable us to drive meaningful change.

In conclusion, to achieve true sustainability, we must transform both the systems and the social contracts that govern them. Your thoughts and contributions on how we can further this narrative and implement these changes would be invaluable.