Do businesses really need a sustainability manager?

Emma Brigginshaw, head of sustainability & ethics at myenergi, discusses the critical role of a sustainability manager and explores the power companies have to decouple environmental and social impacts from economic growth.

Without a doubt, achieving the UN’s 17 Sustainable Development Goals will require collective action from government, consumers and the business supply chain. That said, the burden of responsibility is not and should not be shouldered equally. In the OECD, businesses make up for 72% of GDP, with the remainder from government, non-profit activity and household incomes.[1] With such an overwhelming majority of wealth and spending power, businesses undoubtedly hold the keys to unlocking a green, healthier future for our planet.

Outside of raw financial power, businesses also have the human resources, technical expertise and sheer force of will in a competitive landscape which rewards a higher focus on sustainability. Governments and regulators often imperative to create policy which effects real change, especially in a world fraught with geopolitical tension; while NGOs, charities and the general population (with the best will in the world) often lack the bandwidth or influence to make the most meaningful impact.

It falls to businesses, then, to both make the bold decisions that other stakeholders cannot, while utilising their significant financial power to, bluntly, put their money where their proverbial mouths are. Make no mistake, driving change on this scale requires huge resources and capital expenditure; which means that businesses will, of course, be seeking a return on the sizeable investment required to drive sustainability beyond that of a clean conscience.

So, what must businesses do to achieve the returns required to drive sustainable growth, and how can leaders bring about the herculean task of adopting sustainability into their organisation?

The business case for sustainability: achieving ROI

Research suggests that consumer patterns are rapidly shifting towards a preference for sustainable products and services[2], especially among younger people. Businesses are typically the quickest to adapt to evolving trends, and therefore focus has (in recent years) been heavily targeted on bolstering up sustainability departments to reach ever-lofty climate and emissions goals, and therefore become more attractive to consumers and supply chains.

In fact, research suggests that around 75% of businesses have increased spending on sustainability in the past year[3], with expenditure primarily focused on sourcing more sustainable materials, increasing energy efficiency and kickstarting employee training initiatives.

Even cleantech and renewable energy companies, like myenergi, whose products and services ostensibly do good for the planet by accelerating the global transition to clean energy adoption, need a clear pathway towards sustainability, with a strong team in place to both strategize and set plans in motion.

Indeed, the latest data from LinkedIn shows that, in 2024, ‘Sustainability Manager’ was the fastest-growing job group in the UK.[4] For companies seeking to strengthen their sustainable credentials in a competitive market influenced by consumer spending power, sustainability professionals are increasingly being taken on to help businesses strengthen their credentials.

Take Intel for example. In 2021, the leading semiconductor company ranked 47th on Barron’s annual list of the USA’s 100 most sustainable companies. And one year later it sat at number one.[5] So just how did Intel jump 47 places in 12 months? Well, in short, Intel took on a chief sustainability officer (CSO) to set out clear new sustainability targets and set the tech giant on a clear and actional pathway to reach them.

McKinsey reported that businesses which achieve the trifecta of revenue growth, increased profitability and ESG performance far outperform those who only achieve two or fewer[6]. It's clear then that a company’s sustainability activities are not only achievable side-by-side with commercial growth, but are actually becoming a fundamental part of business operations, inextricably linked to commercial success.

But how does sustainability work in practice? And, more importantly, where does a company start when it comes to embarking this journey?

Establishing a sustainability function

The role of a sustainability manager is almost as various and multi-faceted as the concept of sustainability itself. On a day-to-day basis, managers will be involved in everything from environmental management systems and carbon footprints to modern day slavery and supply chain due diligence, while creating strategy plans, engaging with stakeholders, monitoring regulation and exploring new technologies. Each of these elements will need to be effectively communicated with the senior leadership team.

There are, however, a few barriers that must be overcome if businesses are to effectively implement a clear sustainability strategy with ambitions to achieve the greatest impacts and minimal risk. As one would imagine, financing presents the largest hurdle for businesses, especially during periods of economic uncertainty[7]. Reporting also comes up as a challenging aspect, with companies facing increasing practical challenges of meeting evolving requirements[8].

A dedicated sustainability manager with a strong team behind them can help businesses navigate these challenging environments and translate plans into impactful action. For achieving long-term success, the most crucial role of a sustainability manager is to embed sustainable practice into the core strategy of a business.

Sustainability alone cannot work in a silo and must be fully integrated into a company’s business model. This is where a sustainability team really comes into its own.

Weaving sustainability through all parts of the business distributes ownership among the entire team. A sustainability manager, team, or department’s greatest strength is the ability to disseminate responsibilities to the entire business while instilling an environmentally and socially focused company-wide workplace culture.

Establishing sustainability as a cross-cutting function that influences decision-making and practices throughout the entire organisation is the ultimate goal of any sustainability manager. This way, businesses can more effectively focus time and resources into implementing change, while also inspiring an environment more conducive to knowledge-sharing and cooperation.

Collaboration with like-minded companies seeking sustainable pathways (which make positive impacts while maintaining a competitive advantage and driving profitable growth) can help to reduce the resource strain on those individual businesses, greatly accelerate technological innovation by combining and compounding on expertise, and ultimately lead to a more effective and efficient drive towards sustainability.

[1] https://www.mckinsey.com/capabilities/strategy-and-corporate-finance/our-insights/a-new-look-at-how-corporations-impact-the-economy-and-households

[2] https://hbr.org/2023/09/research-consumers-sustainability-demands-are-rising

[3] https://www.travelperk.com/blog/business-sustainability-statistics/

[4] https://www.principalpeople.co.uk/insights/navigating-the-demand-for-sustainability-managers

[5] https://www.sap.com/insights/viewpoints/whos-in-your-sustainability-department.html

[6] https://www.mckinsey.com/capabilities/strategy-and-corporate-finance/our-insights/the-triple-play-growth-profit-and-sustainability

[7] https://www2.deloitte.com/uk/en/insights/environmental-social-governance/sustainable-consumer-behaviors.html

[8] https://www.spglobal.com/esg/insights/featured/special-editorial/key-2024-sustainability-trends-driving-the-year-ahead