Verdantix Sustainability Council Reveals What's Top Of Mind For Sustainability Leaders

Verdantix Sustainability Council Reveals What's Top Of Mind For Sustainability Leaders

On March 26^th, Verdantix hosted its first Vantage Sustainability Council roundtable, bringing together sustainability leaders from various industries to explore emerging priorities. The Council provides opportunities for these leaders to discuss their sustainability challenges, technology priorities and best practices. Key topics we covered during our first session were navigating regulatory and political uncertainty, addressing challenges in communicating sustainability initiatives, and finding a balance between reporting and driving performance improvement. Council members also shared questions they are regularly facing, such as:

• Does the emphasis on sustainability reporting do more harm than good?
  Regardless of the level of ambition of their organization, most council members voiced concerns about the burden of sustainability reporting. While some level of reporting is necessary – after all, firms can’t manage what they can’t measure – complying with regulations such as the CSRD has overshadowed the need for practical implementation of sustainability initiatives. This echoes the sentiment behind the Omnibus proposal, which aims to streamline some of the more onerous sustainability reporting requirements from the EU. One council member noted that the emphasis on sustainability regulations has made some stakeholders forget why sustainability matters, and that dedicating so much time to reporting may hinder real progress.
  
  
• How do you inspire leaders in your organization to do the sustainability work, without strong regulatory drivers to do so?
  Some of the council members, especially those whose firms have taken a risk- or compliance-based approach to sustainability, noted that ambiguity around regulatory requirements has made it difficult to obtain executive buy-in for sustainability initiatives. One member shared that they have been engaging with their executive team through a risk and financial lens – but with increased uncertainty, they have to find novel ways to incorporate sustainability into these discussions. However, other council members, whose firms have incorporated sustainability into their business strategy, view this uncertainty as an opportunity, identifying potential strategic advantages in these shifting dynamics. One firm, for example, noted that it is currently looking to expand its sustainability initiatives in the APAC region.
  
  
• What will my team look like going forward?
  Council members discussed how regulatory uncertainty is reshaping team structures and hiring strategies. Firms are not only hiring new talent to manage sustainability initiatives, but are also reorganizing their teams to remain agile in the face of regulatory uncertainty. For example, members discussed hiring an ESG Controller to help their firms understand the risk side of sustainability; enlarging their data teams as they expand their use of AI and emissions calculators; moving to fixed-term contracts for sustainability subject-matter experts; and upskilling employees in other departments.
  
  

For more information about the Sustainability Council or to access our research, visit our Vantage Councils page or the Vantage research portal.