How to make the business case for sustainability reporting
Not so long ago, corporate sustainability was all about “saving the planet.” You probably remember the era: mission statements bursting with green ideals, earnest promises to rescue the polar bears, and high hopes for rainforests. Looking back, those ambitions were well-meaning, but sometimes disconnected from the real challenges businesses face every day.
The face of every sustainability initiative in the early 2000s.
Fast forward to today—things have changed. Sustainability has become a critical risk management and business strategy tool, and no one has all the answers. More and more leadership teams I work with are asking, not just whether sustainability is good for the world, but how it’s protecting their bottom line during uncertain times.
The truth is, credible sustainability data has gone from being a “nice-to-have” to an absolute necessity. It’s now one of the pillars of risk management, capital investment decisions, and competitive strategy. With new regulations, evolving investor and consumer expectations, and supply-chain demands, robust reporting is front-and-center—especially when markets are unpredictable. Hello, 2025!
The face of every sustainability reporting lead right around February/March 2025
Selling the value to executives: key moves for sustainability leads
If you’re in the position of building buy-in for sustainability reporting, you already know it takes empathy, patience, and a dose of realism to sell the risk before the solution. Here are some steps that have made a difference for me and my clients:
Speak to value: It’s not easy for anyone to feel optimistic about penalties, reputational issues, or supply chain chaos. But focusing on the value of sustainability initiatives can help. UPS is a case in point, using AI-powered route optimization (ORION) to save 10 million gallons of fuel and cut emissions by 100,000 metric tons per year. That didn’t just help the planet; it helped their bottom line, too (UPS story).
Use regulations as anchors: Regulations like CSRD and California’s SB 253 and SB 261 are moving targets. I find it’s more effective to use these frameworks for context but keep the conversation focused on how reporting strengthens the business, beyond compliance.
Customize for decision-makers: Let’s face it — everyone in leadership has their own worries. CFOs focus on numbers, CEOs on strategic alignment, and boards on resilience. Tailoring materials, such as one-pagers that speak their language, shows respect for their perspective.
Lead with business value, not just mission: Even the most mission-driven leads sometimes face internal skepticism. When you frame reporting around efficiency, risk management, and performance (and can show how sustainability drives results), people pay attention.
Focus on the financial returns: McKinsey’s global analysis found that triple outperformers (companies that combine growth, profitability, and ESG leadership) delivered annual shareholder returns 2 percentage points above peers focused only on financials, and 7 points higher than the broader sample. And over half of these firms grew their revenues by 10% or more per year, with less volatility (McKinsey analysis);
The face of companies when the business case for sustainability is made well.