Navigating three crucial sustainability challenges

Havas Genus recently hosted the second breakfast in their sustainability leaders’ series. Led by David Holliday (Founding partner, Havas Genus), the event featured speakers including Delphine Mazillier (Chief Purpose Officer, Decathlon UK), Sam McCarthy (Head of Sustainability, Nandos) and Tom Wilkins (Director of Public Affairs, Cicero).

The latest roundtable delved into three key topics surrounding sustainability in business:

1. Credible transition plans – navigating the proposed Transition Plan Taskforce (TPT) regulation.
2. Sustainability culture – how do you create a sustainability culture?
3. Momentum during the ‘cost of living’ crisis – how do you maintain momentum for your sustainability programme amid an economic downturn?

TPT is a broad and varied topic, covering everything from strategy implementation and engagement, to reporting and governance. As such, the focus of this discussion was necessarily broad, however we will delve into important transition topics in future forums.

Introduction to TPT

Starting with a focus on the ‘big HOW’ of sustainability (shifting from mere ambition and target setting to delivering transformational results), participants discussed TPT – a UK framework currently under consultation – designed to address the question of how businesses can deliver the net-zero transition.

The TPT framework aligns with existing sustainability reporting standards like the ISSB and aims to become the global standard for credible climate transition plans. It consolidates an organisation’s ambition, action plan, engagement strategy, metrics and governance into a comprehensive framework.

The TPT framework is scheduled for final publication this summer. Following its release, sector-specific guidance and regulatory updates are expected in 2024. Transition plans are also being developed in parallel in the EU and other jurisdictions, indicating the global relevance of this framework.

After being provided with an overview of TPT, the forum discussed best practice for creating, driving forward and successfully embedding sustainability strategies and transition plans.

1. Transition planning ‘top tips’

• Transition plans will iterate and do not have to be perfect – organisations will have to show tangible action and progress every year and formally re-baseline their transition plans every three years. This recognises the need for urgent action but also that transition plans will naturally adapt and evolve over time.
• Business model transformation – there is a recognition that incremental change has not worked and moved the needle. Sustainability likely requires a deep transformation of your organisation’s business model, including your organisation’s products and services.
• Think holistically across your value chain – the key is to get started and engage your whole value chain: your suppliers, your employees, trade associations and your peers. Collaboration is a powerful enabler of change and collective efforts will lead to shared success.
• Underpinned by Scienced Based Targets – action needs to be backed up by clear objective and relative measures of success that are science based.
• Don’t wait for 2024 – focus now on putting in place a credible and holistic transition plan for your organisation, using the existing TPT guidance and other sources.

2. Creating a sustainability culture

• Think about both the cultural and corporate messaging – your employees don’t care about the long-term corporate targets, they want to know why it matters to them, their role and what they can do now. It’s a fine balance of having a long-term vision and identifying the practical actions, but to succeed you must do both.
• Develop and implement cultural and corporate messaging that resonates with employees on a personal level, effectively connecting their individual roles to the broader sustainability vision.
• Develop comprehensive training programmes that not only focus on staff but also include suppliers to foster a sustainability culture throughout the entire supply chain. This will ensure that everyone involved understands and embraces sustainable practices.
• Encourage leadership to actively model sustainable behaviours and promote a mindset that prioritises sustainability. This can be achieved through regular communication, aligning sustainability goals to performance goals, and recognising and rewarding sustainable practices within the organisation.

3. Maintaining momentum for your vision

There has been an evident shift of people de-prioritising sustainability and reducing funding in this area given the current ‘cost of living’ crisis. Balancing long-term visions with short-term cost savings can be challenging, however, there are still opportunities to make progress and maintain momentum against your vision.

• Even if sustainability is not the top priority for the year, ensure that progress on sustainability plans continues. Use this opportunity to integrate sustainability into everyday business practices and normalise its importance. Emphasise and communicate the co-benefits of sustainability, such as cost savings, enhanced brand reputation and customer loyalty, to reinforce the value of sustainability efforts.
• Foster collaboration and synergy between sustainability and finance teams to ensure that commitments are upheld, while acknowledging present realities. Find innovative ways to achieve sustainability goals without compromising financial stability. This may involve exploring funding options, optimising resource allocation and identifying opportunities for efficiency and cost-effectiveness.
• Can you shift the rhetoric? If people are consuming less, then this is an opportunity to invest more in new services such as the re-sale, repair and rental markets for retailers, focusing on these business models and engaging your consumers with them.