INSIGHTS
Strategic priorities in modern sustainability management
The landscape of sustainability management is undergoing a significant transformation, driven by technological advancements, increasing regulatory pressures and evolving stakeholder expectations. Our research has identified three key themes that are shaping the strategic priorities of sustainability leaders across various industries.
A. Making sustainability central to business strategy
1. Aligning environmental and commercial success
We need to rethink how we assess financial hurdles. There's a common perception of what the financial threshold should be, typically viewed over a three-year period. Environmental goals might not fit this mould because they often require a longer-term strategy.
Chris Brown
VICE PRESIDENT OF ENVIRONMENT, SOCIAL, AND GOVERNANCE, SYNTHOMER
Modern organisations no longer view sustainability as something to balance against financial goals. Rather, environmental considerations have become an integral part of sound business practice. Leaders are increasingly finding new ways to connect environmental initiatives with financial objectives, showing that sustainability and profitability can coexist.
Chris Brown from Synthomer emphasises the need for a shift in financial thinking: "We need to rethink how we assess financial hurdles. There's a common perception of what the financial threshold should be, typically viewed over a three-year period. Environmental goals might not fit this mould because they often require a longer-term strategy." This perspective highlights the importance of adopting a more extended view when evaluating sustainability initiatives.
This perspective is being put into practice at UCLH, where Elliott Westhoff has embedded sustainability into core procurement: "Every new purchase, regardless of scale, undergoes a sustainability assessment. For major tenders, at least 10% of scoring criteria is allocated specifically to sustainability and corporate social responsibility metrics." The organization supplements this approach by using sustainability grants and charitable resources to support early adoption of sustainable alternatives.
Efficient property management reduces costs and increases market value, helping us meet sustainability targets while boosting financial performance.
Carl Brooks
GLOBAL HEAD OF ESG - PROPERTY MANAGEMENT, CBRE GROUP, INC.
At East London NHS Foundation Trust (ELFT), the integration of sustainability and finance has been formalised through leadership structure. Having the Chief Financial Officer lead their Green Plan has proved transformative. As Adam Toll, Assistant Director of Sustainability explains: "The alignment between sustainability and financial objectives helps integrate these goals into our broader financial viability programme. We've linked sustainability initiatives with our 'Going Further, Going Together' programme, which focuses on both financial savings and sustainability."
In the property management sector, Carl Brooks from CBRE points out the synergy between sustainability and financial performance: "Efficient property management reduces costs and increases market value, helping us meet sustainability targets while boosting financial performance." This approach demonstrates how environmental goals can directly contribute to an organisation's bottom line.
Alistair Blackmore from Bidwells shares a practical example of this alignment: "We're installing solar panels in our head office, set to cover a third of our electricity demands, with a payback period of about four and a half years. Presenting this to the finance team as a solid investment option with such a return period is met with enthusiasm." This illustrates how sustainability initiatives can be framed as sound financial investments.
The alignment between sustainability and financial objectives helps integrate these goals into our broader financial viability programme. We've linked sustainability initiatives with our 'Going Further, Going Together' programme, which focuses on both financial savings and sustainability.
Adam Toll
ASSISTANT DIRECTOR – SUSTAINABILITY & NET ZERO LEAD, EAST LONDON NHS FOUNDATION TRUST (ELFT)
Sustainability teams often act as interpreters, translating external factors like opportunities and regulations into business context, and building the case for our sustainability initiatives.
Tom Salisbury
DIRECTOR OF SUSTAINABILITY, GKN AUTOMOTIVE
In the healthcare sector, Janet Smith from The Royal Wolverhampton NHS Trust provides examples of cost-effective sustainability initiatives: "We've implemented several cost-effective initiatives which address both social responsibility and carbon reduction. One example is our walking aids reuse scheme. With an investment of just over £1000 for collection bins, we've seen significant results." Such initiatives demonstrate that sustainability efforts don't always require substantial financial investment and can often result in cost savings.
Edward Barlow from Local Partnerships LLP offers a perspective from local authorities: "Public sector organisations must deliver value for money, so we balance economic, social and environmental benefits on a case-by-case basis. The more an environmental benefit costs, the less likely it is to win that argument. That's why integrating environmental considerations from the outset of any project is crucial." This underscores the importance of early integration of sustainability in project planning to achieve both environmental and financial objectives.
At GKN Automotive, the sustainability team plays a crucial interpretive role. "Sustainability teams often act as interpreters, translating external factors like opportunities and regulations into business context, and building the case for our sustainability initiatives," explains the Tom Salisbury, Director of Sustainability. This approach has allowed the identification of numerous synergies between environmental and financial objectives. "Ultimately, our sustainability efforts are about improving efficiency, which has clear financial benefits."
Public sector organisations must deliver value for money, so we balance economic, social and environmental benefits on a case-by-case basis. The more an environmental benefit costs, the less likely it is to win that argument. That's why integrating environmental considerations from the outset of any project is crucial.
Edward Barlow
DIRECTOR - CLIMATE, LOCAL PARTNERSHIPS LLP
These insights show a growing recognition that environmental goals and financial performance are increasingly connected. By finding mutually beneficial scenarios, organisations are demonstrating that sustainability can create business value, improve operational efficiency and contribute to long-term financial success.
