Your Corporate Sustainability Journey

Research has identified multiple benefits from integrating sustainability initiatives into business functions. Companies can see cost savings via reduced employee turnover rates and improved performance, and operational efficiencies like energy use reductions. Sustainability strategies can mitigate risks to operations and supply chains that rely on materials and facilities at risk of environmental disruption. Brands can also manage reputational risks as consumers increasingly expect meaningful sustainability engagement. Sustainability programming presents growth opportunities as well. For example, eco-brands often have higher consumer loyalty.

It helps to begin by understanding the connection the business has to sustainability topics. This includes exploring the drivers for this work (e.g., company purpose, customer requests, and investor expectations) and business case (see the answer above). Followed by identifying the most important sustainability issues to focus on. This is typically done through a materiality assessment, based on what matters most to your business and stakeholders. It helps to have context of regulations related to sustainability and the broader landscape of sustainability efforts in your industry by reviewing how competitors, customers, or suppliers are engaging. This information is used to build cross-functional alignment on priorities, set goals and targets, and develop a strategy for action.  More information on building a sustainability strategy is available here. 

Sustainability targets and goals that a company uses are based on the approach described above to identify priorities, combined with the company’s starting position, level of ambition, and capabilities. Sustainability targets and goals may be internal or include external-facing aims. A combination of goals, which are longer-term ambitions, and targets, which are the milestones for the goals, is used. The topics may cover a range of broad and specific areas of climate, nature, circularity, employees, communities, and supply chains. For example, climate targets can cover greenhouse gas (GHG) emissions reduction across scopes 1, 2, and 3 in the near term and longer term, often aligning with the external framework from the Science Based Targets initiative (SBTi). Circularity goals may include packaging goals to progress on reducing virgin plastic or designing for recyclability and reuse.  Increasingly, companies are setting nature-related goals on water use, deforestation, biodiversity restoration, and more. More information on these topics can be found on the Pure Strategies services pages.

Engaging internal stakeholders early in the development of the sustainability program helps build a foundation for success. For example, executive leaders and department heads can provide feedback on priorities during a materiality assessment process. Cross-functional workshops with department representatives can help brainstorm and gain alignment on sustainability goals and targets. When developing a strategy for action, it is important to get input and buy-in from those responsible for implementing it. They can also help identify potential roadblocks early on and the resources needed to overcome them.

Often, a large share of a company’s impact and opportunity lies in its supply chain, so supplier engagement is key. First, companies can clearly communicate their priorities and goals and gather information to assess what suppliers are already doing.  Then, companies can identify strategic ways to best help suppliers build capacity and progress, such as with technical assistance, financial investment, or other approaches. Companies and suppliers can collaborate to implement projects, which can strengthen relationships over time. Empowering suppliers with clear guidance and support helps both parties be successful. More information on supplier engagement is available on the Pure Strategies Pure Supply page.