The Power of Dedicated Sustainability Teams: Driving Change and Creating Value

In today's business landscape, sustainability is no longer a nice-to-have – it's a must-have for organizations. As fires, droughts, floods and other natural disasters rock supply chains and cities alike, it’s clear this is no longer a question of long-term success, it’s short term maintenance and medium-term survival.

As the urgency of climate change and other environmental issues intensifies, companies are increasingly recognizing the need for specialized expertise to drive their sustainability efforts. Enter the dedicated sustainability team. But what exactly is a dedicated sustainability team, and why is it so important?

Simply put, it's a person or group of professionals within your organization focused solely on developing and implementing sustainability strategies, managing environmental and social impacts, and driving sustainable innovation. Its importance cannot be overstated.

According to LinkedIn, the number of green jobs, including sustainability managers and officers, has grown worldwide at a rate of 8% annually over the last five years. This trend reflects the growing recognition that sustainability is deeply complex and requires new ways of thinking, acting, designing and building across the business.

Benefits of Forming a Sustainability Team

Here are three key reasons why your organization should consider forming a dedicated sustainability team:

1 - Rowing in the Same Direction

Sustainability is like safety, it must be owned by everyone. Every part of the business needs to both prepare and capitalize on the changing climate reality: physical risks, regulatory requirements, demands from downstream customers on their suppliers, etc. A dedicated sustainability team catalyzes, orchestrates and supports these efforts. 

The sustainability team will not own every sustainability initiative, but it will facilitate the cross-functional working groups so initiatives are designed well and implemented successfully. 

The purpose of the sustainability team is not to be the deep experts in every aspect of, for example, biotechnology lab sustainability. But they are there to help upskill the deep experts who work every day in those labs. 

The simple truth is that sustainability is a new topic in most business meetings, and most MBA programs. It is critically important that there is someone in the room who’s formal role is 100% focused on introducing and representing sustainable business. When that voice is there, businesses can realize sustainability-driven risk and cost reductions, and innovation and growth opportunities. 

2 - Risk Management and Cost Savings 

Sustainability experts can help identify and mitigate environmental and social risks that could impact your business. Moreover, implementing sustainable practices often leads to operational efficiencies and reduced costs. For instance, energy efficiency initiatives or waste reduction programs can result in significant savings over time.

lntel, for example, used a make to order business model that reduced their inventory and facilities footprint. Doing so drove the order cycle time for the Atom chip down from nine weeks to just two. At the same time, Intel achieved a supply chain cost reduction of more than $4 per unit for the $20 Atom chip.

Your departmental leaders are probably aware of many of these opportunities but don’t have bandwidth to tackle them, and may not be coordinating with each other in a holistic way.

3 - Innovation and Growth Opportunities 

Sustainability considerations can drive innovation and open new market opportunities. A dedicated team can help your organization identify these opportunities and develop sustainable products or services that meet evolving consumer demands.

For example, when Unilever launched its affordable nutrition brand, Knorr, it tapped into additional consumer demand for sustainable, nutrient-dense food products by offering a product line of nutrient-dense food at a lower price point. Knorr achieved $5 billion in turnover in 2023 with double-digit growth in Latin America with its line of products costing between $1 and $3, all made with biodiverse, locally sourced ingredients.  

The company integrated sustainability into every aspect of its business, from sourcing to product development to marketing. By 2020, Unilever's "Sustainable Living" brands were growing 69% faster than the rest of the business and delivering 75% of the company's growth.

Considerations When Forming a Sustainability Team

However, forming an effective sustainability team isn't without its challenges. Here are some key considerations:

• Structure Matters

There's no one-size-fits-all approach to structuring a sustainability team. According to ENGIE Impact, 58% of organizations execute their sustainability initiatives from a functional, facility, or site level, while 42% have adopted a centralized approach. The right structure depends on your organization's size, industry, and sustainability goals. Consider whether a centralized, decentralized, or hub-and-spoke model would work best for your company. 

For example, Rocket Companies has adopted a cross-functional approach to sustainability. They have a dedicated sustainability team that works closely with various departments across the organization. This approach allows them to integrate sustainability into all aspects of their business, from mortgage lending practices to their own operations.

• Leadership Development and a Supportive Culture are are Critical

Effective sustainability teams need strong leadership to drive change. As organizational learning firm WDHB notes, sustainable leaders need qualities like adaptability, systems thinking, influence, and a long-term perspective. Investing in developing these qualities in your sustainability team and broader leadership can pay significant dividends.

• Start Small, Think Big

If you're just beginning your sustainability journey, don't feel pressured to build a large team immediately. Start with a small core team and gradually expand as your initiatives grow. The key is to have dedicated resources focused on sustainability, even if it's just one or two people initially.

However, a common mistake is to only staff enough to meet measuring, reporting and other compliance requirements. Companies that do so miss many of the true benefits of a sustainability team – including becoming a more efficient and sustainable company ready for 21st century challenges and requirements.

• Measure and Communicate Impact

To maintain support for your sustainability team, it's crucial to measure and communicate its impact. Develop clear KPIs aligned with your business goals and regularly report on progress to stakeholders.

Looking Ahead

Forming a dedicated sustainability team is a powerful way to drive meaningful change in your organization and create short and medium term value. While it requires investment and effort, the potential benefits – from enhanced reputation and reduced risks to new business opportunities – make it a worthwhile endeavor for forward-thinking organizations.

As you embark on this journey, remember that sustainability is an ongoing process. Your team and approach should evolve as the sustainability landscape changes. By committing to this path, you're not just preparing your organization for the future – you're helping to shape a more sustainable future for us all.

Anya Gandy, Global Sustainability Specialist Manager at Kearney, is an advisor to the Net Zero Institute. This blog touches on key aspects of forming a dedicated sustainability team, which we explore in greater detail through our exclusive member resources. From Insight Briefs that break down complex issues to on-demand workshops and other resources, we provide the tools and guidance to help you navigate every step of your journey. To access these resources and join a network of leaders committed to a net-zero future, we invite you to become a member today.