Sustainability strategies are not a one-time process – they must be dynamic and iterative not only to align effectively with business goals, but also to adapt to changing political and regulatory environments. Every organization is different, so there is no one-size-fits-all approach, but sustainability leaders should be aware of four key triggers for a sustainability strategy refresh:
- Evolving sustainability performance.
Over time, a business’s sustainability performance matures, which may highlight the need to update strategies to align more closely with operational realities. For example, operational transformation often reveals the delicate balance between ambitious strategy goals and the practicalities of implementation. A recent example is the recalibration of net zero targets, where overly ambitious goals are being adjusted to reflect more realistic, achievable objectives. - Expanding scope of sustainability concerns.
The landscape of sustainability issues firms must address changes rapidly, meaning static strategies can quickly become obsolete. Issues that were not key considerations five years ago – such as the responsible use of AI – are now integral to sustainability strategies. As new challenges emerge, strategies must evolve to keep pace. - Increasing number of stakeholders.
For some organizations, sustainability initiatives were initially carried out by a single decision-maker or small sustainability team. Now, there’s an ever-growing number of internal and external stakeholders all with their own distinct priorities. As involvement with sustainability evolves, businesses need to reevaluate their sustainability priorities and roadmaps. For example, the growing involvement of chief risk officers in sustainability discussions will necessitate updates to sustainability strategies, particularly in terms of incorporating stronger risk management frameworks. - Changing maturity.
The evolving ESG and sustainability maturity of firms can require a shift in strategies from broad, high-level approaches to more action-oriented, granular networks of strategies focused on specificities such as product development and competitive advantage concerns.
Alongside these factors, there are also external levers that may require sustainability decision-makers to adapt their strategies. Firms should, for example, be ready to respond to rapid regulatory changes and new business opportunities. Keeping sustainability strategies agile and refreshing processes as needed are key to staying resilient and competitive as the landscape changes.
