Sustainability is not a nice-to-have; it’s existential to business and life

Sustainability is an existential crisis for people, the planet, and all organizations—but firms rate it at the bottom of the macroeconomic drivers that impact their objectives (see Exhibit 1). Panelists at the HFS Horizons Summit in London argued that those drivers listed higher than sustainability—such as supply chain, inflation, and changing consumer expectations—are all shaped by and connected to the global sustainability context. Enterprises across the board must design, integrate, and execute sustainability to drive outcomes that matter.

Exhibit 1: Sustainability impacts all elements of an organization’s value chain, and they must address it holistically

Sample: 600 survey participants
Source: HFS Research, 2023

Josh Matthews, Chief Sustainability Officer for HFS Research, facilitated a panel of six sustainability leaders at the HFS Horizons Summit in London on March 23, 2023, that debated practical actions required to progress sustainability and the simultaneous systemic change required. The panel included Linden Edgell, Global Sustainability Director, ERM; Manoj Mathew, Global Head – Sustainability Advisory & Services, Cognizant; Robert Olrog, Consultant, Carbon Limiting Technologies; Ganesh Ram, Partner – Technology, Data and Analytics, PwC; Wolfgang Steiner, Sustainability Business Lead, Europe, Wipro; Marta Trofimova, Sustainability Manager, KERNEL.

Integrating sustainability into value chains and industry ecosystems is the way forward

The passion the panel brought reflected a tapestry of situations (like the war in Ukraine), experiences (community involvement), and business realities (funding sustainability). The panel discussed how stakeholders aligned with the global context, the internal and external opportunities to address sustainability, and data challenges impacting the ESG platform.

Leaders are moving towards more holistic accounting systems that include natural and social capital—to measure, track, and forecast impact across the value chains. We need to enable these new systems through technology and data competence.

—Wolfgang Steiner Sustainability Business Leader; Europe, Wipro

Answers to hard questions are never clear. That was the case for these panel members, who remained energetic in their determination to make an impact while recognizing the challenges that remain in their organizations, clients, and communities. The discussion led to five key practical takeaways that will require all of us to lean in:

• Sustainability will make organizations resilient; greenwashing is not required!
•  Sustainability is an economic solution, as well as a people and planetary one; just lean into it.
• No matter your roles in communities, organizations, industries, or ecosystems, you have a role in supporting sustainability; will yourself to participate.
• Business impacts are being integrated into sustainability demands; fighting to decouple them is a terrible approach for all.
• An ecosystem approach will become even more critical to address the sustainability context; together, we will thrive.

Corporate sustainability is currently skewed towards reporting and compliance. There needs to be a critical-path view to incorporating science-based targets as part of the business operating models. Sustainability factors should be overlaid on strategic and operational decisions for effective transformation.

—Manoj Mathew Global Head – Sustainability Advisory and Services Cognizant

Organizations must begin to translate their narratives into action. There are three dimensions to consider (see Exhibit 2):

• Systems influence: Organizations and coalitions with the greatest influence must move first and help align policy, the public, and businesses with the global sustainability context.
• Customer engagement: Organizations must position their products, services, and everything else related to their customer engagements under the global sustainability context.
• Internal sustainability: Organizations must address their internal sustainability by aligning their actions and plans to the global sustainability context.

Exhibit 2: Influencing sustainability requires an ecosystem approach

Source: HFS Research, 2023

The Bottom Line: Integrating sustainability into organizational functions and activities will proliferate meaningful impacts.

Enterprises must not think of sustainability as another chore, another box to check, or a cost item for compliance. Instead, it must be baked into the culture, incorporated into workflows, and embedded into everything it does. The time for lip service has long passed, and it is time to deliver…for all of us.

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