Why Sustainable Leadership?
Sustainability is now more important to organisations than ever before. With increasing demand from customers and changes to legislation, including The Environment Bill and political policies including G7 pledges, sustainability is rapidly moving from a nice-to-have option, to a critical business necessity.
Harvard Business review defines sustainability in business as...
“The process of doing business without negatively impacting the environment, community or society as a whole, to make a positive difference to customers, stakeholders, and wider business practices.”
Put simply, for a business to sustain itself relies on a healthy environment and to achieve this we need business leaders who understand sustainability issues.
Sustainability is a long-term investment. The effects that companies can have on the environment and society are under constant scrutiny and smart businesses understand that rather than focusing on short-term earnings, they need to consider environmental investments that will deliver long-term value for themselves, their stakeholders and the planet.
Environmental sustainability is becoming increasingly important to customers too, with people changing their consumption habits because of their environmental preferences, and with these attitudes being more prevalent in younger demographics, this is set to become more widespread in the future. As well as the changing attitudes of consumers, the attitudes of employees are also changing. Employees, particularly younger generations, prefer to work for companies that align with their values, including environmental responsibility. A strong sustainability commitment can boost employee morale, attract top talent, and reduce turnover rates.
As consumers become increasingly aware of and concerned about environmental issues, companies that demonstrate a commitment to sustainability can enhance their brand reputation, build customer loyalty, attract new customers, and differentiate themselves from competitors. A strong sustainability record can also attract environmentally conscious investors, with third-party investors attaching increasing importance on a company’s ESG performance in their decision making.
Why 'Getting it' Matters...
Sustainable leaders don’t need telling that embracing environmental sustainability practices can also significantly lower operating costs. Simple changes such as reducing paper needs to reduce material expenses, to investment in renewable energy provisions such as solar panel installation, can all help to reduce operating costs whilst simultaneously reducing carbon emissions.
An effective sustainable leader will inherently recognise that sustainability drives innovation, helping create and optimise products and services, and even business models. Companies that embrace sustainability can tap into new markets and meet the growing demand for green products and services.
In this age of increasing uncertainty, stakeholders from across the spectrum, including customers, employees, investors, and communities, now increasingly expect companies to act responsibly and failing to meet these expectations runs the risk of negative publicity, loss of trust, and decreased loyalty. On the flipside, positively engaging with stakeholders on sustainability issues can foster positive relationships and enhance corporate reputation and sustainable leaders know this!
By considering environmental and sustainability issues in all aspects of business and viewing it not just as a moral imperative but also a strategic necessity for modern businesses, it leads to cost savings, innovation, improved risk management, and a stronger competitive position, ultimately contributing to long-term success and resilience.
At Sherrington Associates, we recognise how essential sustainable leadership is to the success of a business and use our 4A Model as a framework for assessing leadership candidates throughout the recruitment process. This helps us understand the candidate’s potential for developing a lasting culture of sustainable leadership.
To learn more about our services, talk to our team…
- Leadership Recruitment
- Leadership Development
- Culture Diagnostics & Values Assessments
- Sustainable Leadership Consulting
