INSIGHT #6
Sustainability responsibility coming from C-suite and the board
KEY FINDING
40% of respondents indicated their CEO or board has explicit oversight and accountability for their company’s sustainability strategies and related compliance.
Responses indicating a higher level of direct board oversight on sustainability efforts demonstrate the increasing priority or value placed on these strategies.
40% of survey respondents indicated that the CEO or board was accountable for or had explicit oversight of sustainability strategies and compliance for their organizations — and just shy of one-fifth of all respondents indicated the CEO or board was directly leading sustainability for their organization.
Since board members typically focus on the most impactful and most visionary initiatives within an organization, board management of sustainability efforts also suggests higher investor awareness.
Furthermore, 56% of respondents showed that the accountability of sustainability strategies is generally assigned to a senior executive or VP-level leader within a dedicated ESG or Sustainability department, or Finance.
Accountability for sustainability strategies and compliance within organizations
Departments leading sustainability strategies and compliance efforts
According to survey, ESG or Sustainability departments are primarily leading sustainability strategies and compliance efforts, reporting directly to the CEO.
While just 9% of respondents indicated EHS was leading sustainability efforts, in cases where ESG, Sustainability, or EHS departments take the lead, there is a notable allocation of specific budgets for new data collection and reporting requirements.
This reporting structure not only reflects a higher level of commitment from the top in integrating sustainability into the company’s mission and vision but also highlights the importance of robust financial-grade data to inform decision-making and communications.
ESG or Sustainability
Finance
Our board, investors and/or the CEO
Operations
EHS
EHS influence on sustainability strategies
EHS professionals play an important role in influencing and guiding sustainability strategies within organizations. Their expertise ensures that sustainability efforts align with regulatory standards and broader environmental objectives.
What sustainability leaders are saying
ENSURING COMPLIANCE & CONTINUOUS IMPROVEMENT
"EHS is essential in shaping our efforts towards sustainability in [the] right direction, ensuring compliance with regulations and helping with continuous improvement."
Director, ESG at company with over $1B in annual revenues
PROMOTING A CULTURE OF SAFETY
"[EHS] helps us with our sustainability efforts by promoting a culture of safety and environmental stewardship throughout the organization."
ESG Manager at company with $500-$999M in annual revenues
INTEGRATING PROCESSES INTO DAILY OPERATIONS
"In my experience, [EHS] helps guide our sustainability strategies by integrating health, safety, and environmental considerations into our daily operations."
Director, ESG at company with over $1B in annual revenues
Turn insights into action
As ESG strategies and sustainability reporting become core to risk and reputation management — and are viewed as a competitive differentiator for businesses — avoiding greenwashing and understanding key pitfalls are crucial for demonstrating responsible business practices. Uncover 6 checks to avoid greenwashing.
What is greenwashing?
Greenwashing is a practice used by businesses to represent themselves as more sustainable than they truly are – whether it’s providing misleading information regarding a product’s sustainability or labeling a fund as “green” when it is not, greenwashing erodes trust and can have significant repercussions. Importantly, greenwashing is not a static concept – it occurs on a spectrum, ranging from outright deceit to wishful thinking.