Successful implementation and management of sustainability in an organization demands clear direction, committed leadership, and strategic influence. However, sustainability cannot be achieved without a robust governance structure. Sustainability governance enables enterprises to integrate sustainability strategy across the business and strengthen stakeholder relationships. In this article at edie, Amanda Powell-Smith explains why sustainability leaders must determine if their organization has the right governance structures to turn intentions into reality.
Ways to Build Sustainable Governance Structure
Keep in mind the following considerations while building effective, sustainable governance structure:
- CEOs and other key C-suite leaders must understand the link between corporate governance and sustainability. “Discussions on purpose and culture are already wide-ranging; without a clear vision, openness to change and provision of psychological safety that allows individuals to speak up, progress is unlikely,” says Powell-Smith.
- Board members must encourage accountability and early communication to ensure that sustainability is integrated with other business goals.
- Sustainability governance structures must be in sync with the existing business model.
- Business leaders must allow flexibility to make sure the sustainability program is relevant to businesses’ strategies.
Why is Sustainability Governance Crucial?
Strengthening sustainability governance will enable organizations to take new actions, unlock investment, and focus on managing risks. Every organization must tailor its approach to achieve sustainability governance based on its business model, resources, structure, and level of sustainability integration into the business. Therefore, organizations must have a cross-functional executive committee below the board level that engages leadership across business units, regions, and functions. This committee must provide strategic guidance to employees to implement sustainability governance strategies.
Developing sustainability governance strategies is undoubtedly time-consuming. However, it will help you ensure successful management of ESG issues at your enterprise. To read the original article, click on https://www.edie.net/blog/Hard-coding-sustainability-action-into-governance-structures/6098855.