It is an all-too-common refrain: The lack of internal buy-in for corporate sustainability projects and strategies.
In 2019, we worked with the Cornell University Sustainable Global Enterprise (SGE) Center to survey 19 corporate sustainability professionals. We found that 85% of respondents need more and better metrics to make the internal business case for sustainability initiatives.
“What do I commiserate about with my colleagues at sustainability conferences? No one at my company gets it... How do I get more buy-in?” – Sustainability Professional
To help businesses generate internal buy-in for sustainability initiatives, let's review a few crucial metrics to track before diving into three ways sustainability teams can set themselves up for success.
Here are two strategies for creating metrics that effectively convey how sustainability is good for business and bottom lines.
To date, most sustainability metrics are focused on addressing progress toward resolving social or environmental challenges that have a material impact on the business. Once these “materiality” metrics are defined, they are often tracked in accordance with external reporting standards or guidance including:
Unfortunately, while materiality metrics are critical for addressing the concerns of external stakeholders—advocacy groups, shareholder activists, regulators, etc.—they do little to generate support inside the company for investing in sustainability.
To build the internal case for sustainability projects in large companies, sustainability teams also need to develop and track metrics that align with the priorities of internal stakeholders.
To make the business case for sustainability, internal metrics will need to differ from standard materiality metrics. So, while outward-facing sustainability plans will likely map alignment with the UN Sustainable Development Goals (SDGs)—for example, in percentages of energy and water consumption reductions or number of individuals reached through health and livelihood initiatives—the internal, behind-the-scenes metrics a company will use to drive success may look quite different.
For example, before sponsoring new or existing sustainability initiatives, procurement teams will want to know how health initiatives in their supply chains could translate to higher quantity or quality of yields from their farmers. Operations teams will be interested in the savings and payback estimates of energy efficiency initiatives, so that they can calculate the return on investment.
To create metrics that effectively convey how sustainability is good for business, you need to start by understanding the objectives of key business units from across your company. Typically, business unit goals within a company will include:
These examples help paint the picture of how different departments are evaluated and rewarded.
However, this list is not meant to be exhaustive: Sustainability professionals don’t necessarily need to become experts on business metrics. Instead, they need to invite the experts to the table.
Here are three steps sustainability teams can take to set themselves up for success at the beginning of any new project.
The sustainability team needs to articulate why a sustainability initiative is aligned not only with the overall corporate strategy but with the goals of other business units in the company: procurement, operations, marketing, HR, etc.
Identify the internal stakeholders whose business goals align with the business value of the sustainability initiative.
For example, an initiative to empower women in supply chains might be of interest to procurement teams because it could also reduce absenteeism at manufacturing plants in the supply chain. Or investments in regenerative agriculture could help procurement teams enhance the resilience and productivity of key supply lines.
Once you have an understanding of the business value and the internal stakeholders, you can then align with those metrics and embed the sustainability project into these existing systems and processes.
For example, many procurement teams have been tasked with diversifying their suppliers; this unlocks new potential for sustainability teams to advance plans for sustainable sourcing and/or social procurement.
Moving forward, you can use this information to prioritize projects based on what the company and its internal stakeholders care about most, which will greatly increase your likelihood of success.
Once a sustainability project has been given the green light, ensure that internal teams are in agreement with the stated metrics and that they are willing to partner on measuring success. Then set up a way to track the metrics, collect the first round to establish a baseline, and decide how often to collect and check progress.
During the course of the project, the sustainability team should coordinate closely with partner teams to understand the challenges encountered. Monitor metrics during the agreed-upon timeframe and evaluate if the project is delivering the anticipated results. If not, convene with partner teams again to understand what isn’t working. Report back to leadership on a regular basis on successes of the projects, to help gain more momentum and investment.
As the importance of corporate sustainability continues to grow, sustainability professionals must develop and make use of metrics that help show the value of these projects to the rest of the company. Better metrics can go a long way in generating the internal buy-in needed to make sustainability initiatives successful.
Buissnesses should consult a Sustainable Impact Strategist to learn more about generating internal buy-in and forging collaborative, market-led solutions to address pressing environment and sustainable business challenges.
Editor's Note: This post was originally published on June 11, 2021, and has been updated for accuracy and current best practices.