Brand Management Versus Value Creation

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Every business is talking about sustainability today. It is a topic for every boardroom, every CEO, and every C-suite team. The first step towards translating this goodwill into action is to develop a compelling roadmap for change.

In Canada, 41% of C-suite leaders say their organization has a sustainability strategy that has been acted upon and clearly communicated—in line with the global average (43%). However, it is important to note that this view is not shared by others across the organization, with only 24% of employees and 33% of next-generation leaders saying the same. 

Existence of Sustainability Strategies

Percent indicating there is a sustainability strategy in place that has been acted upon and clearly communicated

At the same time, there are signs that Canadian organizations are at the early stages of their sustainability journey. Just 34% of C-suite leaders say their CEO is personally committed to sustainability and that organizational progress has been made—someway behind the global average (51%). Notably, the United States is significantly more optimistic, with 69% of C-suite leaders saying their CEO is committed to the sustainability cause.

CEO Commitment to Sustainability

Percent indicating the CEO is personally committed to advancing sustainability and progress has been made

And when asked about why their organization was taking sustainability action, 42% of C-suite leaders cited brand management concerns—they wanted to be seen as socially responsible or reputable or use sustainability for competitive differentiation. By comparison, just 14% said value creation was the driving force of their sustainability efforts. 

C-suite perceptions of the driving force behind company’s approach to sustainability?

A brand-first approach is problematic because it is unlikely to lead to the transformation that is required to thrive in a new era of stakeholder capitalism. When leaders only see sustainability as a bolt-on to existing strategy, rather than a fundamental driver of business growth and value creation, they may not be willing to set aside the necessary resources and capital to drive deep changes to business and operational models. 

In 2022, there is a significant opportunity for leaders to challenge prevailing assumptions about the value of sustainability to their business. Those that see it is a core growth driver, rather than a threat to be managed, will make the biggest strides forward in the years ahead.

Anticipated Progress by Driving Force of Sustainability Strategy

Percent indicating great deal of or significant progress

The fact that senior leaders are more optimistic than next-generation leaders and employees about sustainability progress is a concern. A compelling vision and expert communication will be critical to mobilizing employees and fostering an authentic enterprise-wide culture of sustainability.

Shawn Cooper
Russell Reynolds Associates