The world needs more sustainable leaders

A regular conversation we have with leaders is discussing what kind of legacy they desire to leave and how they are building that legacy. As we know, intentional or not, leaders are building their legacies in everyday decisions, actions and behaviours. So, intentional or not, part of a leader’s legacy is how they have helped and supported the recovery and revitalisation of the environment for following generations.   

Leaders have a responsibility to include sustainability in their legacy plan. And there are some excellent short-term reasons to make the effort, not just the long-term impact that will go beyond our tenure. 

Let’s look at some of the benefits and pitfalls that leaders need to consider:  

• Environmental, social and governance (ESG) principles are important to the success of your business. Having a great, or flaky, ESG policy will affect your bottom line.  

  • Investors are increasingly prioritising investment in companies with robust ESG policies, values and measurable outcomes. According to the 2021 EY Global Institutional Investor Survey Report, many are divesting from companies lacking in them. 

  • More than ever before, people are choosing employers who share their own personal values and can demonstrate their commitment to the environment, developing sustainable practices throughout the organisation. 

  • Customers are motivated to purchase goods from suppliers who use ethical and sustainable sources. 

• But beware… there are quick-fix seductions that will put your business at reputational and financial risk. For example: 

  • Your policies and behaviours do not align. Transparency is vital to trust and if your ethical and environmental policies are found to be merely tick-box policies which don’t stand up to scrutiny, you will lose the trust of your people, customers and investors. 

  • Similarly, greenwashing is not a good look. Don’t make claims that cannot be backed up, and don’t embark on misleading marketing campaigns. These may be tempting shortcuts, but these deceitful strategies have no place in the toolkit of a leader who values not only the environment, but also integrity, trust and transparency. 

  • You appoint a Sustainability Officer, or delegate the ESG responsibilities to an employee, then fail to give them a voice in the business. Like the previous two examples, this might give you the short-term satisfaction of taking action, but it is only meaningful if you empower them to do the role well. That means ensuring they have all the resources they need, providing a platform or forum where they can genuinely present ideas, influence decisions and have a positive impact. 

So, you still want to be a sustainable leader, but you’re not sure where to start? 

• It’s ok to start small. Be sure about the small, consistent steps, rather than making grand gestures that cannot be fulfilled. But don’t stop at small, challenge yourself to make bolder steps as your knowledge around ESG grows and business grows. 

• Learn. Find a suitable course, and an expert to guide you, do your research. This isn’t about a quick fix, or ‘winging it’. There are many courses online and some in-person locally, so ignorance is no excuse. 

• Hone your skills as a leader. We live in an increasingly complex world and the ideas, data and impact around all things ESG is still developing and maturing. Leaders need to be agile, open to new ideas and new ways of operating; leaders need to have a long-term mindset that is much broader than just profit. 

• Keep the conversation going. Collaborate with your people, listen to their ideas. Collaborate with other leaders, this will likely be even more effective! 

The most important thing is that we start doing something. Thinking about how we can positively contribute to the environment is good. Discussing it in teams is good. Having policies and procedures can be good, but nothing changes until we act.