Study Shows Successful Sustainability Initiatives Are Led by Top Execs

With so many organizations adopting sustainability programs these days, I’ve wondered if there are reliable benchmarks that can help determine what constitutes a highly successful sustainability initiative. “Where Sustainability Lives,” a study¹ published by consulting firm Framework: CR, recently provided some interesting insights regarding that matter.

The study suggests that there is a strong correlation between organizational structure and successful sustainability programs. Kathee Rebernak, Framework: CR President and CEO, said that correlation exists, in part, because stewardship of those programs now rests in close proximity to executive suites or boardrooms.

According to the study, programs that are either managed and executed by senior executives or report to the board of directors tend to be more successful at garnering high-profile awards for sustainability performance, including the Carbon Disclosure Project’s Leadership Index and Fortune magazine’s list of 100 Best Companies to Work For. Rebernak suggests that recognition from respected sources can be regarded as a reliable benchmark of an organization’s commitment to sustainability.

Indicators that are closely aligned with successful sustainability programs are:

• The title of the position that is responsible for sustainability,
• The department charged with managing sustainability efforts,
• Organizational proximity to the CEO; and
• If, and how frequently, the department reports to the board of directors.

“The general trend indicates that companies receive more external recognition if the person in charge of sustainability sits higher within the organization structure,” according to the report. “For example, companies in which sustainability is managed by a senior vice president perform better than those that delegate that function to vice presidents, directors or managers.

“It’s not enough to have ‘CEO support.’ For the sustainability effort to drive business value, the CEO must be in the driver’s seat.”

As leading organizations continue to earn public acclaim and business advantages from outstanding sustainability performance, it won’t take long before top decision makers see the connection and become more closely engaged in their programs.

¹ Visitors must register to obtain the Framework: CR study.

Add comment August 24th, 2009