Sustainability managers can drive change in firms

Ten years ago, there were only a handful of sustainability managers. However, in the past few years, the number of sustainability roles has increased and grown in both prominence and influence. Many of the leading companies are committing serious resources and authority to this role.

In the past, sustainability and corporate responsibility roles were ‘nice to have’, treated as peripheral to the real work of the organisation. This too is changing. Sustainability managers are now increasingly at the heart of business operations, strategy and stakeholder relations. They are becoming more senior, often reporting directly to C-level roles.

Sustainability is not static. Environmental, social and governance expectations and ambitions are continually changing. We can therefore expect the role of sustainability managers to keep evolving.

Interestingly, the path to becoming a sustainability manager is often varied, as the role requires more of a way of thinking than a particular set of credentials.

Therefore, it can be said that regardless of background, one can succeed in this role if, among others, one is not afraid of innovation, has the ability to lead through influence and is passionate and resilient to adapt to changing conditions.

The ESG Disclosures Guidance Manual by the Nairobi Securities Exchange (NSE) #ticker:NSE elaborates on the role of sustainability managers to drive ESG integration, measurement and reporting of performance.

Specifically, sustainability managers are responsible for tactically leading the ESG reporting process. They are the focal point and primary contact for the ESG reporting exercise. They own the reporting process, scope and timelines and are responsible for communicating progress to the executives.

To perform this role successfully, sustainability managers should collaborate with all relevant stakeholders as the ESG integration and reporting process is a multidisciplinary undertaking. As a start, the sustainability manager should recruit ESG champions from across the organisation.

Ideally, every department in the organisation should be represented by a person with decision-making ability. This person is to be accountable for information related to their department. The sustainability manager has also to ensure that this team has a clear understanding of the ESG reporting process.

Sustainability managers are responsible for the operations of the board committee on ESG.

The securities exchange ESG Guidance Manual recommends that this committee sits quarterly to, among others, set the organiational ESG strategy; ensure development of polices and guidelines to facilitate implementation of the ESG strategy; assess how current ESG issues are likely to impact organisational performance, including monitoring ESG metrics and taking appropriate decisions; make recommendations to the Board on ESG matters, including resourcing, ESG investments, and performance management.

Sustainability managers are responsible for coordinating the activities of this committee.

It is important that sustainability managers work toward obtaining sufficient buy-in from the executive team and the Board on the ESG reporting process.

This can be achieved through each member in the ESG reporting team raising awareness in their own areas of operation on the business and societal case for ESG integration from which sustainability managers are to develop a quantified business case for ESG integration and reporting in the organisation.

In order to eventually help the organisation produce and publish an ESG report, sustainability managers should develop a project management plan that includes the business and societal case for ESG integration and reporting; the ESG reporting process; the reporting boundary and scope of material issues; the standard and framework identified for reporting; internal and external stakeholders that will be engaged in the reporting process; communication plan; budget allocation and key measures of success.

The project management plan should be communicated to all internal and external stakeholders. Sustainability managers are to ensure that all stakeholders familiarise themselves with the project management plan and important milestones in the ESG reporting process.

This opportunity can be used by sustainability managers to clarify any issues and set out expectations of all stakeholders involved in the reporting process.

It is expected that the project management plan culminates to a published ESG report. Thereafter, sustainability managers are expected to undertake a project review to analyse outcomes, lessons learnt and start planning for the next reporting cycle.

The main job of any sustainability manager is to help their organisations change to a model where sustainability becomes the main driver of development and profitability.

To be able to show up effectively, it is crucial that sustainability managers have a comprehensive understanding of their organizations, the business sector they operate in, maintain good relationships with stakeholders and have a good grasp of the economic, social and regulatory environment.