I have repeatedly written about the role leadership has in regards to ‘getting sustainability done’. See e.g. here.
This time around I want to make it much more explicit though: If a company is not performing in sustainability terms, it as good as always down to senior leadership. Both, executive leadership – CEO, COO, CFO, CMO, CSO etc. – as well as non-executive leadership at board level.
For one, arguably simplistic, reason: sustainability deliverables are oversteered by ‘higher priority’ KPIs. These could be things such as:
- Cost savings: Adding a view pennies on a total order o several hundred thousands of Dollars (or Euros, for that matter) in order to get FSC certified material. Not an option.
- Short-term time savings: operations are running. Changing the procedures, even slightly, would mean a one-off time investment of, say, 1 work day. Not an option.
- Efficiencies: Changing the all inclusive leases of real estate to leases of space + bills. Most likely figuring out along the way that the bills included a significant ‘just in case’ margin. Not an option.
I could go on. All of these are, fundamentally, decisions where the ball stops at the top leadership level.
It also means, that top leadership level needs to be accountable and explicit to themselves and the employees what the ‘thin red line’ is that they are willing and wanting to walk.
Cost always first? What is the cost-vs-benefit trade of with sustainability, and how is this being evaluated? Are all decisions always taken in favour of requests that come from sales or marketing? How much does product or IT have to lobby for investments that allow them to reduce manual processes and optimise their time and results?
This is the one thing that senior executives and the board need to understand: Sustainability-related topics always and invariably something that is at the core of a company. Not a single operational decision comes without implications affecting it. It is for that reason that it is all about values. Because priorities and the related accountabilities, is what values are ultimately about.
When the rubber hits the road, actions speak louder than words. And their echo resonates loud and clear through to the last nook and cranny of a company.
Are you a INED or a senior exec, and curious how to do better? Give me a shout!
