Aligning CSR with Business Goals

Let’s talk about sustainability in business—because it’s probably not getting the attention it deserves. For years, many companies have treated sustainability as an afterthought—something nice to have but not critical. They’ve kept it separate, maybe with a recycling program or a CSR report here and there. But here’s the truth: treating sustainability as a side project is no longer an option. Now, here’s where it gets interesting: when sustainability isn’t integrated into core business strategies, companies miss out on huge benefits. We’re talking about things like increased profitability, reduced operational costs, and greater resilience in a volatile market. Here’s the catch: sustainability isn’t just about doing good—it’s also about doing well. Companies that embrace it outperform their competitors. Just look at Unilever: its sustainable brands grew 46% faster than others in their portfolio. So why aren’t more companies making sustainability a priority? Maybe it’s because they don’t realize the full impact. Or they’re still treating it like an optional “nice to have.” But here’s the thing: treating sustainability as a core strategy unlocks value across the board. It helps you meet stakeholder expectations, attract top talent, and secure your business’s future. So what can you do? Shift your mindset. Think about how sustainability can fit into every aspect of your business—from supply chains to product design. Appoint leaders who are committed to driving change and start integrating sustainable practices into your daily operations. Isn’t it time we started thinking about sustainability as a core business strategy—not just a side project?

Are your ESG initiatives just feel-good projects, or part of a strategic program? Many companies fall into the trap of implementing random environmental or social efforts—like reducing paper use or launching a one-off green campaign—without tying them back to a bigger plan. These isolated acts might look good on paper but often lack long-term impact. That’s where an intentional ESG strategy comes in. Instead of scattered efforts, a well-crafted strategy aligns with your company’s core values, business goals, and culture. It’s not just about doing good; it’s about ensuring that every initiative is purposeful and contributes to the overall mission of the organization. I’ve worked with organizations where the first step in building an ESG strategy was reviewing their mission statement and values. When these elements serve as the foundation, the ESG program becomes a natural part of the organization, not a side project. From there, the real work begins: setting specific, measurable, and realistic goals. Take, for example, A company targeting net-zero carbon emissions by 2030. This isn’t a vague aspiration—it’s a concrete goal that can be tracked, measured, and reported. Using frameworks like the Science Based Targets initiative (SBTI) or the UN Sustainable Development Goals (SDGs) can help ensure that your goals are in line with global standards, making it easier to measure progress. But it doesn’t stop there. A successful ESG strategy requires ongoing commitment and alignment with stakeholder expectations. Regularly assessing progress and engaging key players—whether they’re investors, employees, or customers—helps keep the strategy relevant and impactful. So, Is your company making random ESG efforts, or are you crafting a strategy that reflects your values and drives real change? #ESG #Sustainability #BusinessStrategy #EnvironmentalImpact #CorporateResponsibility

The hottest topic in my circle isn't ChatGPT. It's whether or not companies should speak up about social issues. In my years studying and teaching corporate communications, I've witnessed countless well-intentioned blunders. Remember when Starbucks thought baristas initiating conversations about race over your morning latte was a good idea? Their tone-deaf "Race Together" response to the 2014 Ferguson police shooting became a case study in my classes on what NOT to do. Corporate America keeps stumbling into these minefields without a map. So I developed one. Before your C-suite drafts that impassioned statement on the latest controversy, answer these three simple questions: 1. Does this issue genuinely align with your business strategy? 2. Can your organization actually move the needle on this issue? 3. Will your core stakeholders - not just the loudest voices - support this position? Each "no" to these questions should set off alarm bells. Three "yeses" don't guarantee success, but they’ll help you ensure your choice is a strategic one. I've watched too many executives confuse outrage with strategic imperative. But your shareholders didn't invest in your company for moral grandstanding - they expect discernment. The framework I laid out above isn't about avoiding controversy; rather, it's about engaging selectively where you have legitimacy, capability, and stakeholder alignment. Everything else is just expensive virtue signaling. When in doubt, remember: not every issue deserves your corporate megaphone.

A recent BDO survey (article in comments) reveals that 75%+ of CFOs plan to maintain or increase sustainability investments—even in the face of potential policy shifts under a new administration. This underscores a crucial shift I am seeing with my clients: Sustainability is no longer just a regulatory obligation but a strategic business imperative. From ESG-driven risk management to long-term value creation, companies are prioritizing sustainable practices to stay competitive. The report concluded that "91% of companies working to integrate sustainability also anticipate increased revenue in 2025, compared to only 74% of other respondents, and 69% expect increased profitability, ahead of their peers at only 56%". Companies that are integrating sustainable practices into their operations and supply chains are unlocking cost savings, innovation, and competitive advantage while mitigating risks. #Sustainability #BusinessLeadership #ESG #CorporateStrategy

♟️Sustainability Regulations: Saying the quiet part out loud    Sustainability reporting frameworks are continuing to evolve, as we’ve seen most recently in the EU Commission's omnibus proposal. That takes away the 'easy button' from validating sustainability reporting. (Your auditor suddenly go quiet in board meetings about assurance?)   The uncertainty of these regulatory updates brings a silver lining that forces the value of data surfaced back into the conversation.   In my recent The Wall Street Journal interview, I made a point that's getting lost in the sustainability conversation: Carbon accounting is about generating activity-based carbon information that can be broken down along the lines of P&L, surfacing revenue or removing risk by business line or geography. Read it at https://lnkd.in/efNTRMZE   Of the companies I see turning this moment into a value vs. compliance chess game, they are designing their reporting to reveal the direct relationship between sustainability metrics and business performance. They are integrating financial and sustainability data to: 🔹Surface actionable insights to accelerate cost and carbon reduction along the value chain (like ways to reduce material consumption) 🔹Reveal new revenue streams, opportunities for investment, or margin increases (like green steel) 🔹 Already use AI to generate data and draft reports, knowing that investors will also be using agentic AI   The bottom line: While CSRD came out of the box overly complex (in my personal opinion), the foundations of accurate carbon data based on business activities ('actuals') remains the bedrock of the ability to distribute margin and risk from carbon and climate change. It's not about environmental altruism—it's about reminding the Titans of industry that climate change is a business conversation, because mitigation can diffuse risk and adaptation can be profitable.   Deloitte Jodie Stahly Payette Pete Dabbs #SAPsustainability

If you’re a CFO at a PE-backed company — sustainability isn’t a CSR initiative. It’s your best EBITDA lever. Here’s the reality we see every day: If you’re running a manufacturing or real estate company, and you’re looking for $10M, $20M, $50M in EBITDA expansion over 5–7 years? Most of your biggest levers will be sustainability levers: • Redesigning packaging to reduce materials • Launching circularity programs to reclaim products and feed production • Switching facilities to renewable energy or improving efficiency • Shifting transportation and logistics to lower-carbon options • Building brand equity that commands premium pricing with consumers And you don’t even have to call it “sustainability” if you don’t want to. Call it operational excellence. Call it brand repositioning. Call it value creation. But the levers are the same. Because sustainability is now baked into how you expand value — financially, operationally, and reputationally. Look at a company like Lipton under CVC. Premiumizing the brand. Optimizing supply chain efficiency. Aligning with shifting consumer expectations. Every major initiative connects back to sustainability fundamentals. And when you execute well? You don't just hit EBITDA targets. You improve exit multiples. You de-risk the asset for future buyers. You increase strategic optionality. If you’re a CFO or portfolio operator today, you don’t have the luxury to treat ESG as a reporting task. 𝐈𝐭’𝐬 𝐚 𝐩𝐥𝐚𝐲𝐛𝐨𝐨𝐤 𝐟𝐨𝐫 𝐭𝐫𝐚𝐧𝐬𝐟𝐨𝐫𝐦𝐚𝐭𝐢𝐨𝐧. The companies that realize this early will dominate the next cycle of PE exits. The ones who wait? They’ll be explaining “why sustainability wasn’t a priority” in due diligence rooms five years from now.

Straight talk: One thing is 👉 exponentially 👈 more important in 2025 than it used to be. ------- About this post: sustainability leaders need to be catalysts – increasing their own impact and helping others do the same. That means making the case for sustainability persuasive even as times change. ------- 👁️ One common theme stands out when talking to sustainability professionals about what’s going to be a lot more important in 2025. There are plenty of changes to the landscape for sustainability in 2025, but one theme: • Appeals to different audiences • Doesn’t depend on government regulation • And is less susceptible to changes in stakeholder expectations 👉 What is this area of renewed focus? The business case. 1️⃣ Signs of the escalating importance of the business case are everywhere. » Interviewing Chief Sustainability Officers about the new realities of 2025, BSR found: “Many CSOs feel their role and strategies are under heavy scrutiny, with reanimated arguments about the business case.”   Monday, in a Fast Company article, Susan McPherson echoed that theme:   “Corporate responsibility is long overdue for a watershed moment—a revolution that...shifts our understanding of social impact from a nice-to-have to a business imperative.” » This renewed emphasis on ROI and the business case isn’t just in the US, either. Nawaar Alsaadi writes about the need for teams in Europe and globally to "sharpen their business case for change.” 2️⃣ But too many people are still having difficulty quantifying ROI. The Conference Board  found that over 4 in 10 (41%) executives say they “are underperforming or are uncertain about assessing the ROI of sustainability investments.” That’s over twice as many as say that about other kinds of investments (17%). 3️⃣  But this can be fixed. 🔹 The first step is to look for submerged (hidden) value, which is typically 4x - 10x as much as visible value. 🔹 Once you’ve found it, you need to quantify it and make it an important part of your communications, internally and externally. 📖 I’ve written a lot about this process. (You can find many of my writings here on LinkedIn.) 🔹 But I’m also putting together a 2025 toolkit to help sustainability practitioners adapt to the changing landscape while creating more impact. 👉 If you’d like to know when the toolkit is ready, just leave a comment below or DM me. 💰 If you need more expert help, Valutus has software tools that help companies quantify sustainability ROI. ♦️ What you can do: 📍 Take a second look at how sustainability initiatives benefit the business. Look for submerged value and ask around to get others’ perspectives. 📍 Make ROI and the business case a bigger part of what you say about sustainability. 📍 And take your ROI message to additional stakeholders, such as the Finance function, investors, etc. It can help you build new allies, which will be very beneficial. #sustainability #ROI #value #climate #ESG  

1980: Impact is a buzzword stuck in a CSR report. 2024: Impact drives hiring, procurement, and product development. Here’s what forward-thinking companies are doing differently: 1. Break the silos Impact can’t sit in isolation. It needs to be part of every choice. Who you hire, which suppliers you work with, and the way you create products all matter. → Companies embedding impact in operations are seeing higher loyalty from employees and customers. → Treating impact as central to decision-making gives businesses an edge. 2. Redefine CSR A CSR program should change how your business operates, not just exist as a feel-good initiative. → Shift the focus from optics to substance. → Start asking: “Does this choice align with the purpose we stand for?” 3. Get every team involved Impact goals shouldn’t stay at the top; they need to resonate across all levels. → Schedule a workshop to identify how every department can contribute. → Example: Marketing drives purpose-driven campaigns, while procurement prioritizes sustainable suppliers. The result? → A company culture that aligns actions with values. → A brand that leads by example and attracts trust from customers and employees alike. The lesson: Impact works best when it’s embedded in decisions, not left on the sidelines. With purpose and impact, Mario

🤯 Over 60% of #CSR and corporate #SocialImpact initiatives fail. Here are the 8 most common mistakes — and what to do instead. (Full post here: https://lnkd.in/gRSXUDn3) 1: Short-Term Thinking That Ignores Long-Term Sustainability  60% of CSR initiatives fail. Why? Short-term thinking. 👉 What to do instead: Build a long-term roadmap with 3–5 year goals. Invest in programs that grow—not just trend. 2: Saying Yes to Executive Pet Projects That Lack Strategy 77% of CSR efforts aren’t aligned with business goals. Why? CSR Leads comply with Executive pet projects that derail strategy. 👉 What to do instead: Channel leadership energy into initiatives that align with core priorities and employee energy. 3: Failing to Proactively Plan for Inevitable Crises 1 in 2 CSR leaders are unprepared for the next crisis. Why? Lack of proactive planning. 👉 What to do instead: Build your rapid response playbook now. Crises are coming—prepare to lead, not react. 4. Overemphasizing Days of Service and Giving Campaigns Employee volunteer rates are down to 19.8%. Why? Overreliance on days of service and giving campaigns. 👉 What to do instead: Shift to high-impact, high-engagement programs that actually resonate with your people. 5. Copying What Worked for Someone Else Only 13% of CSR strategies are purpose-driven. Why? In lieu of a strategy, we copy something that worked at a successful company (i.e. Patagonia) 👉 What to do instead: Design from the inside out. Align with your people, purpose, and competitive edge. 6. Designing Programs Without Understanding Employee Behavior ~60% of CSR programs fail due to lack of employee engagement. Why? Designing in isolation. 👉 What to do instead: Treat employees like co-creators. Ask. Test. Build with them—not just for them. 7. Underestimating the Power of Skills-Based Volunteering Skills-based volunteering boosts retention by 50%. Why? Most CSR teams still focus on feel-good, low-impact volunteering. 👉 What to do instead: Scale-up accessible skills-based programs lead to deeper engagement and real impact (https://lnkd.in/gBQATwH2) 8. Waiting for Executives to Give You a Strategy and Budget 50% of CSR leaders say they lack resources. Why? Waiting for strategy or budget from the top. 👉 What to do instead: Don’t wait. Start small. Build wins. Create the case for support by showing what’s possible. (More tips: https://lnkd.in/gPabJtGX) Learn more: https://lnkd.in/gRSXUDn3

A few days ago, I discussed how #CSOs are emerging as vital organizational players and trusted advisors to #CEOs. However, it's also essential to understand how they can support their #CMOs in creating differentiated brands and enhancing the organization's overall #reputation.           In a world where brands are increasingly greenwashing, it can be challenging for organizations and their CMOs to define strategies for leveraging authentic sustainability efforts. A 2023 Deloitte survey of 1,015 CMOs suggests a "be, say, do" approach as the key to success.          (Be) Internal Practices First - CSOs are critical in aligning stakeholders on sustainability objectives, benchmarking against peers, identifying performance gaps, and progressing towards ambitious NetZero goals. By connecting excellence in sustainability performance to messaging with certifiable data, CSOs enable CMOs to drive internal sustainability communications that resonate with authenticity and credibility.      (Say) Communicating Company Values Externally – The CSO can work with the CMO to take that internal communication and effectively package it with insights for external stakeholders to tell a compelling sustainability story. Together, they identify the most significant sustainability metrics aligned with the organization's understanding of its customer base and integrate sustainability and digital marketing tools for seamless external communication.      (Do) Developing External Practices Aligned to Values - CSOs collaborate with CMOs to extend sustainability concepts to sales, partners, and suppliers. Initiatives like carbon footprint reduction and waste minimization are done within a partner ecosystem that includes customers and suppliers, yield financial benefits, and contribute to planetary well-being.      Danone is a brand that has successfully implemented sustainable practices in its business operations. Their focus on the importance of food systems and agricultural transformation to tackle climate-related crises is evident.    In 2022, they appointed Henri Bruxelles, a senior leader with a strong background in marketing as CSO to connect value creation with value articulation. Their ambitious climate targets, including methane reduction, water preservation, and regenerative agriculture, are part of their sustainability roadmap, “The Danone Impact Journey.”     They aim to embed sustainability in every aspect of their business to become more resilient, future-fit, and competitive. As a result of their consistent and focused sustainability actions, Danone has achieved a Triple A score for the three environmental areas covered by #CDP: climate change, forest preservation, and water security, making them one of only ten companies to do so.     If you are a CMO, I would love to hear about your aspirations and challenges in building authentic #Sustainability/ #ESG narratives.