Pioneer, follower or laggard: where are you on your sustainability journey?
At a glance
Sustainability is on the top of boardroom agendas, but we see a variance in progress across geographies and industries. Companies find themselves at different sustainability maturity levels; some are well ahead of others, while a sizeable percentage have yet to develop a transition roadmap or articulate their targets. Where is your organisation on this spectrum?
The business case for sustainability is strong and companies are increasingly embedding it into their operations due to evolving pressures from the government, regulators, consumers and investors. Organisations are realising that if they care about financial returns, they need to become sustainable, yet companies worldwide are in different stages of their journey. The first movers stand out with their more proactive approach to setting targets and implementing longer-term initiatives. On the other hand, their more reticent and passive counterparts are under scrutiny to take purposive action.
The GHD Sustainability Monitor 2024 provides four categories of sustainability performance: pioneer (a leader or at the cutting edge); mainstream (making solid progress and changes); follower (waiting to see how others respond); and laggard (doing very little, if anything, in this space).
What separates pioneers and mainstream players from followers and laggards
Our survey of 550 senior executives revealed that, when thinking about sustainability work within their industry, 53 percent would categorise their initiatives as mainstream. Meanwhile, 35 percent confidently regarded themselves as pioneers leading the charge, 11 percent as followers who prefer to wait and take their cue from others, and one percent as laggards doing the bare minimum.
A difference in perception can be observed among executives and respondents in sustainability roles. The c-suite believe their organisations to be pioneers (41 percent), while those in sustainability roles perceived their organisations as followers (16 percent). These nuances also exist at country and industry levels. As new global sustainability standards are adopted, executives will gain more visibility of more consistent and accurate benchmarking on understanding their impact.
Pioneers and mainstream organisations that strengthen their sustainability practices are solidifying credibility among stakeholders. The research suggests these groups are on the front foot to meeting regulatory requirements, gaining access to capital, driving profitability and enhancing business reputation. Playing catch-up will become harder for the underperformers as pressures mount.
Increasing rigour around sustainability practices means more widespread access to robust data and information to better inform business decisions and help organisations assess their progress.
Matching intention with execution
Another glaring disconnect exists between targets and what’s being done. GHD analysis shows that while sustainability sits in the top three priorities for investment, companies struggle to translate their well-meaning intentions into actual progress.
There’s also a realisation that true integration demands a great level of stakeholder engagement and change management. C-level and boards are seen as the owners of the sustainability agenda within their organisation and must promote participation, ownership and accountability to drive meaningful impact.
Sustainability is a long-term commitment. Through the insights of executives, leaders, clients and sustainability advisors, the GHD Sustainability Monitor 2024 helps companies identify a path forward to close the gap and move from laggard to pioneer.
Read the full report here.