Is there a crisis of leadership in sustainability?
“Is there a crisis of leadership in sustainability?” was the title of an event I attended last week.
Hosted by The University of Chester Sustainability & Environment Research and Knowledge Exchange Institute (SERKEI) this important conversation between Professor of Sustainability & Marketing Ethics, Morven McEachern, and Visiting Professor of Sustainability & Innovation, Simon Pringle, offered an opportunity to consider topics including the most effective levers for encouraging commitment to sustainability within business, how well leaders truly understand 'sustainability' as a concept and as a practice, and who - if anyone - is doing leadership for sustainability well.
In an age where the fate of our planet hangs in the balance, the need for strong, effective leadership in sustainability is paramount.
Yet, despite 98% of CEOs saying that sustainability is core to their role only 2% of Sustainability Programmes succeed.
So what’s going wrong?
My takeaways from the key focus areas discussed were:
Do leaders understand ‘sustainability’ sufficiently well, ie. do they ‘get it’?
Unlike traditional metrics such as growth in profitability, market share, and turnover, ‘sustainability’ doesn’t have a number to enable consumers and investors to compare and contrast.
B Corp Certification is a score-based assessment that measures and independently verifies social and environmental performance and is one way of comparing the different B Corp businesses, but even that isn’t a perfect comparison.
And therein lies a problem. Because the term ‘sustainability’ can mean different things to different leaders there is a lack of clarity and consistency. And that can make it difficult for business leaders to understand and to know where to start.
The key really is to simply start with whatever you do understand. As Morven McEachern said, “For sustainability to work – it has to involve everyone – we can continue to secure little pockets of excellence but to really make progress, we all need to get involved. ACTION IS MORE IMPORTANT THAN PERFECTION!”
What are the most common blind spots?
Simon Pringle summed this up perfectly: “Organisations get better and better at doing what used to be important.” In other words, leaders keep doing what they always did, and getting what they always got – a focus on optimising profits and shareholder returns, regardless of the negative impact on nature, the climate, and people.
If we adapt to a new world where we recognise our interdependence with people and our planet, we need to ‘unlearn’ what has served us in the past and develop new ways which consider the impact of our decisions on all stakeholders, not just shareholders.
Other than increased profits, what are the most powerful levers capable of encouraging leadership commitment to sustainability within the private sector?
There is a famous quote in the book School Culture Rewired by Steve Gruenert and Todd Whitaker: “The culture of any organisation is shaped by the worst behaviour the leader is willing to tolerate” Social and environmental impact must begin and end in the boardroom.
The evidence is unequivocal: the crisis of leadership in sustainability is a pressing reality. Greenwashing, short-term thinking, and a lack of conscious leadership have hampered progress. However, amidst these challenges, there are inspiring examples – organisations such as B Corps and business leaders who are proving that sustainable change is possible.
How can we inspire and empower better leaders for a more sustainable future?
Chester-based Sherrington Associates have been researching the mismatch between sustainability in business and a lack of sustainable leaders. When I spoke to their CEO Rob Mckay he said: “Leadership is at a crucial inflexion point. As we transition to a low-carbon world, the world needs leaders who bear the hallmarks of sustainable leadership.
Leadership itself is transitioning from the types of one-dimensional, exclusive and inflexible forms of traditional leadership that have led us to the brink, instead now moving towards new forms of courageous, empathetic, inclusive and empowering leadership that has the ability to drive sustainability.
Sustainability isn’t a department, a project or a programme. Real, meaningful sustainability is a culture and we need leaders who have the qualities to create and nurture a culture of sustainable leadership right across the organisation.”
Once we have the right people with the right skills, and impact on board, what next?
Impact goals and action setting
The common denominator of forward-thinking business leaders is that they set clear, realistic, and courageous impact goals to deliver the business purpose. This can comprise several steps:
Engage the board and the wider team
Plan clear, realistic, courageous impact commitments (often using B Corp principles and the Sustainable Development Goals (SDGs)
Align sustainability goals to business strategy
Communicate clearly to all stakeholders
Activate and embed impact goals throughout the entire organisation and value chain
Review, Measure, and Report Impact
All B Corp Certified businesses are transparent and required to produce an annual Impact Report. Publishing an annual Impact Report is an opportunity to communicate progress on your impact goals transparently and authentically. It’s not a standalone ESG report.
Impact is embedded into every part of the business. An Impact Report should tell stakeholders what you set out to achieve, what progress you have made, what you have learned (positive and negative) and how you intend to improve.
Courageous impact improvement
B Corps must recertify every three years. That focuses the mind away from achieving the initial certification, to long-term, courageous impact improvement.
As conscious consumers, employees, and investors, we must demand transparency, ethical practices, and genuine commitment to sustainability across all parts of the business from our leaders.
By holding them accountable and supporting businesses and initiatives that prioritise people and our planet, we can collectively steer the course towards a more sustainable future.
The crisis of leadership in sustainability is not insurmountable. It requires collective effort, informed decisions, and a steadfast commitment to ethical, long-term practices.
Let’s work together, with knowledge and conviction, and usher in a new era where sustainable leadership is not just a choice but a fundamental requirement for a thriving world.