Why sustainability must be a priority

There are many reasons for organisations to align and embed sustainability within their purpose. When organisations consider the economic, ethical, strategic and legal imperatives for this course of action, it transforms how sustainability is situated within the organisation.

Unfortunately, some organisations have been unable to take sustainability beyond a siloed activity or plan focused on a limited aspect of the organisation to something holistic and integrated into its purpose.

For example, some organisations limit their sustainability efforts to waste and pollution reduction or avoidance, which is a commendable initiative but falls short of the other significant imperatives that sustainability can offer the organisation, such as business growth.

We also see organisations that have incorrectly restricted or defined sustainability to corporate social responsibility (CSR) activities alone. It is usually due to a misunderstanding of sustainability within the corporate context and an inability to extend its integration across the entire organisation. To move sustainability from the periphery to the centre, organisations should consider the following.

First, aligning and connecting the organisation’s purpose with sustainability.

In other words, how do the societal challenges organisations aim to solve align with the sustainability agenda? When well aligned, it enables the organisations to identify the material non-financial issues that will impact their future viability and prospects. Through this process, organisations can map out relevant, like-minded partners aligned with their purpose.

The next step is to develop the ‘what’ and ‘how’.

The ‘what’ helps the organisation define the impact of sustainability across its functions and requires an assessment of how sustainability would transform each function.

Organisations can solve the ‘how’ by incorporating sustainability into existing processes and structures. It will ensure that sustainability is not designed to operate on a parallel track within the organisation, but an integral part of existing frameworks and processes.

Finally, organisations should set the key performance indicators used to track performance against targets, including those that promote accountability.

When sustainability is central within an organisation, CSR efforts, for example, are better refined and integrated into the organisation’s broader operations in an enduring manner.

Organisations must ensure constant engagement with stakeholders throughout this journey, including through reporting that enhances transparency and builds trust.

The writer is a partner at PricewaterhouseCoopers. He is an author who writes and speaks widely on corporate reporting topics.