The bottom-up approach for cultural change in corporate sustainability transformation.

Do we all agree about the importance of buying in from leaders and employees from all levels to achieve sustainability goals within a company? A lack of support from them will definitely rank very high on the list of barriers to a fundamental sustainability transformation.  This results in limited strategic integration, inadequate resource allocation, increased regulatory and compliance risks, stakeholder, and investor skepticism, and, ultimately, the ability to achieve sustainability targets. Similarly, companies with poor sustainability governance may face reputational damage and expose the company to regulatory risks, financial consequences, litigation, legal challenges, and market exclusion, among others.

A compelling business case for action, backed up with a powerful argument on the moral, financial, and social reasons for action, moves the needle in boards and leadership teams. But what about the rest of the employees? Why is it essential to engage them in cultural change? How do we engage them and, most importantly, keep them accountable? 

Employees from all levels influence the company’s financial and non-financial performance. So, with or without a sustainability mindset, employees are making decisions and taking actions—whether they know it or not—that impact issues material to their companies.  In our experience, making them aware and actively taking part strengthens the company’s sustainability capabilities and cultivates a more inclusive, innovative, and resilient organization.

However, that is not an easy job. For some employees, initiatives that promote open dialogue, collaborative work, and skill enhancement can be transformative and engaging, empowering them to embed sustainability into their professional responsibilities. For some others, this sustainability agenda may not resonate.  Incentives for sustainable contributions further nurture a sense of urgency and action-taking, which can result in the chicken-and-the-egg story: incentives, such as personal performance indicators, are not embraced by supervisors due to a lack of understanding, and they don’t engage due to a lack of incentives.  Does this story resonate with you? 

We have a “nugget” for you based on our experience with skeptical members. We know that employment primarily serves personal ambitions — career progression and future stability. Solitaire Townsend, author of the book The Solutions, shares that when presenting to entire functions with thousands of people, according to LinkedIn, the median hiring rate for workers with at least one “green” skill is 29% higher than the workforce average, the fact grabs people´s attention; they ask questions and push on what sustainability skills they need.    Hence, we need to add the “personal case” for action to the business case and engagement programs. That could initiate a more significant amount of change than we can envision.

The most successful cultural changes in sustainability are driven from the top and bottom of organizations. To embrace sustainability values and behaviors within companies, let’s consider strategies for all levels of the organization and understand what matters most to our employees.