Your team is focused on financial targets. How do you ensure sustainability goals aren't left behind?

Start by aligning goals through initiatives like linking energy efficiency to cost reduction. For instance, Walmart's Project Gigaton aims to cut a billion metric tons of emissions from its supply chain, demonstrating how sustainability can drive significant savings.

começo por integrar sustentabilidade nas metas financeiras, mostrando como práticas sustentáveis podem resultar em economias a longo prazo. Comunico claramente a importância e os benefícios das iniciativas sustentáveis, destacando exemplos concretos de sucesso. Estabeleço metas combinadas que alinhem resultados financeiros com objetivos ambientais e monitoro regularmente o progresso em ambos os aspectos. Promovo uma cultura de sustentabilidade através de treinamentos e incentivos, e mantenho uma comunicação aberta para garantir que todos na equipe entendam e se comprometam com a importância de equilibrar ambos os objetivos.

Integrate sustainability into core business strategies, ensuring it contributes to financial performance. Unilever's Sustainable Living Plan ties environmental impact reduction to business growth. Set measurable dual targets like Walmart’s aim for 100% renewable energy while reducing costs. Link compensation to both financial and sustainability achievements, as Tesla does. Invest in sustainable innovations, like IKEA, to drive cost savings and sales. Use regular reporting and cross-functional teams, as PepsiCo does, to maintain focus and accountability for both financial and sustainability goals.

Realmente, não é fácil garantir metas de sustentabilidade quando a equipe está focada em objetivos financeiros. Atualmente, faço parte da área de Suprimentos e atuo diretamente com metas de ESG. Para disseminar e conscientizar a equipe sobre a importância dessas metas, é necessário muito treinamento, além de demonstrar as consequências de não tratarmos esse tema com seriedade. É fundamental estabelecer metas claras de ESG que não impeçam o atingimento das metas financeiras.

Before you do anything else, get your finance team on board and involved! Especially a CFO or similar role. Help them create a quick win - swapping banks or pensions is an easy one for many smaller companies. Seek accounting software that can also measure CO2 so they can understand the numbers.

Certificate Carbon Literacy training is a critical engagement tool for embedding a low carbon culture. A days worth of climate action training that equips individuals with the knowledge, skills and confidence to prioritise low carbon actions within their roles, thus supporting the organisation sustainability strategy and embedded sustainability across all functions including finance.

Educate staff using gamification to engage them in sustainability practices—companies like Microsoft have successfully used gamification to promote eco-friendly habits.

Nike is training its employees to care about sustainability through transparency and global collaboration. Walmart has a very organized supply-chain training program to help achieve sustainable improvements. Every year, General Mills offers annual reports about its accomplishments with sustainability and global responsibility. Starbucks teaches its employees about its four main sustainable programs: climate change, recycling and waste reduction, water and energy conservation, and LEED certification for stores. Every year during the annual shareholder meeting, PepsiCo publicly reveals its updated sustainability strategy and goals for the following year.

Integrating sustainability into financial targets is key. I've successfully implemented a balanced scorecard approach, where sustainability KPIs are weighted equally with financial metrics in performance evaluations. This ensures every decision considers both profit and planet. I've also tied executive bonuses to sustainability achievements, driving top-down commitment. By demonstrating how sustainable practices reduce costs and mitigate risks, I've shifted the narrative from "sustainability vs. profitability" to "sustainability drives profitability." This approach not only aligns our financial and sustainability goals but also fosters innovation and long-term thinking across the organization.

Track progress with advanced analytics tools, such as IoT sensors for real-time energy monitoring, to maintain momentum and showcase tangible results.

In my experience, integrating sustainability KPIs into our financial reporting has been crucial. I've implemented a balanced scorecard approach, where sustainability metrics carry equal weight to financial ones in performance evaluations. This not only keeps sustainability front and center but also drives innovation. For instance, when we tied executive bonuses to carbon reduction targets, we saw a surge in eco-efficient initiatives that actually boosted our bottom line. By aligning sustainability with financial success, we've created a culture where green thinking is synonymous with smart business, ensuring neither goal is left behind.

ESG reporting frameworks offer invaluable guidance on metrics selection, providing a solid foundation for KPI development. While these frameworks outline general metrics, they often lack the specificity required for individual organisations. This is where tailoring becomes essential. Carefully analyse industry standards and benchmark against peers to identify the most relevant metrics to track progress.

Would use a digital monitoring, reporting and verification (dMRV) system in order to allow your team to track and see progress made. A dMRV can further be used to capture the different data and can be useful to use in order to analyze such data for setting a strategy. Moreover, by tracking impact through a dMRV, it is easier to include a gamification element in order to rewards your team members accordingly. Gamification in sustainability would keep them eager to contribute in a positive way.

Use tools like dashboards and scorecards to visualize progress, similar to how companies like Google and Unilever use their sustainability reports. Implement key performance indicators (KPIs) that include energy savings, waste reduction, and carbon footprint alongside financial metrics. Conduct quarterly reviews to assess performance and adjust strategies as needed. By maintaining transparency and accountability, you ensure that sustainability goals are continually monitored and aligned with financial objectives.

Incentivize success by offering stock options for achieving sustainability milestones, aligning personal financial benefits with corporate goals.

To ensure sustainability goals are not sidelined while focusing on financial targets, our approach integrates both aspects through a unified incentive structure and clear performance metrics. By aligning these goals from the outset and incentivizing success in both financial and sustainability domains—whether through bonuses, recognition, or promotions tied to achieving specific metrics—we ensure that progress in one area supports the other. This strategy promotes cross-functional collaboration, educates our team on the importance of sustainability for long-term profitability, and maintains transparency in reporting progress to keep everyone aligned and motivated.

Effective sustainability incentives should be material and measurable. Base them on clear, quantifiable metrics that align with strategic goals, such as sales from sustainable products. Extend incentives beyond top executives to include senior management and middle managers, tailoring metrics to their roles. Increase the financial significance of sustainability incentives to over 20% of the total variable compensation. Keep incentive schemes simple and transparent, using a small number of KPIs. Additionally, consider non-financial incentives like internal recognition programs. Regularly review and update the incentive strategy to adapt to evolving stakeholder expectations and regulatory frameworks.

It's all good and well integrating non-financial metrics into performance reviews and reward system, but they must be similarly weighted to financial incentives otherwise employees will just focused on driving revenue and profit (particularly where the benefits of sustainability activities are difficult to directly quantify).

Integrate sustainability into core business functions, like procurement, by prioritizing eco-friendly suppliers. Unilever's Sustainable Living Plan, which integrates sustainability into brand development, has led to consistent revenue growth.

By embedding sustainability into the systems that drive our business, we ensure it becomes an integral part of our decision-making process, receiving the same level of attention as financial considerations. This approach means sustainability factors are systematically evaluated alongside other business metrics, guiding our strategies and operations towards responsible practices that support long-term environmental and social goals. By making sustainability a natural consideration in every decision, we not only enhance our overall corporate responsibility but also contribute to sustainable growth and resilience in a dynamic business environment.

Collaborate externally through public-private partnerships to drive broader impact—Starbucks' partnership with Conservation International to ethically source coffee is a great example.

Engaging with external stakeholders is crucial for unlocking synergies between sustainability and financial goals. Diverse perspectives from suppliers, customers, and communities can reveal creative approaches to integrating sustainability into core business operations. For instance, an indigenous community might possess traditional knowledge about sustainable land management practices that can be adapted for corporate use, reducing environmental impact and potentially generating cost savings.

Engaging with customers, suppliers, industry peers, and community organizations fosters a shared understanding of sustainability challenges and opportunities. Through partnerships and dialogue, we can leverage collective expertise and resources to innovate and implement sustainable practices across our supply chain and operations. By listening to diverse perspectives and aligning our goals with broader societal and environmental objectives, we strengthen our commitment to responsible business practices and contribute positively to our stakeholders and the planet as a whole.

Engage with external stakeholders such as local communities, NGOs, government bodies, suppliers, and customers. Patagonia partners with environmental NGOs to align corporate and environmental goals. Use diverse communication platforms for regular updates and transparency, like Unilever’s detailed sustainability reports and community events. Co-create solutions with stakeholders to ensure relevance and impact, similar to IKEA’s partnership with WWF for sustainable forestry. Leverage external expertise from academic institutions and form strategic partnerships like the Carbon Disclosure Project for shared knowledge and collective pressure to improve sustainability practices.

Partner with external organizations, NGOs, and industry groups to leverage their expertise and resources in achieving sustainability goals. Collaborations can provide new insights, innovative solutions, and additional support to balance financial and sustainability objectives.