5 minute read 9 Nov 2022

The power of people is an essential tool in actualising organisational sustainability goals.

sustainability-people-walking-through-field

How organisations can centre sustainability ambitions around people

By Shaun Scantlebury

Partner, People Advisory Services, Ernst & Young LLP

Leads EY’s UK Diversity and Inclusion Advisory team. Focused on talent management, change and inclusion. On the Leadership 2025 advisory board, promoting board level diversity in social housing.

5 minute read 9 Nov 2022

The power of people is an essential tool in actualising organisational sustainability goals.

In brief
  • Taking a human-centric approach to sustainability transformations is crucial to their success.
  • Leaders must create an environment where sustainable behaviours are inevitable.
  • Leaders can deliver sustainability goals by bolstering capability, creating opportunity, and providing motivation for their people.

With the UK’s Net Zero legislation coming into effect, which demands all UK-listed companies to have a clear, deliverable plan of how they will decarbonise all of their emissions, organisations are charging ahead with sustainable transformations to achieve these new requirements.Beyond the legislative regulations to be sustainable, the business case for greener organisations is not only attractive, but well evidenced. For instance, a meta-analysis on 200 studies of sustainability initiatives and corporate performance found that 88% of organisations who embed ESG practices within their business strategy had better operational performance.2 Additionally, this study found that stock price performance is positively correlated with sustainable business practices.

Sustainability is undoubtedly on the agenda for all stakeholders. For example, the EY Lane4 Purpose-led Transformation Survey found that 84% of employees feel it’s ‘very important’ or ‘important’ for them to work for an organisation that positively impacts society.3 Moreover, the EY Future Consumer Index suggests 43% of global consumers want to buy more from organisations that benefit society, even if products or services cost more.4 Investors also increasingly demand for organisations to be more sustainable, with the EY Global Institutional Investment survey 2022 highlighting how 89% of investors would like consistent reporting of ESG performance measures to become mandatory and that 74% of investors are likely to divest based on poor ESG performance.5

Despite sustainability being high on the agenda, many organisations continue to grapple with achieving their sustainable transformation ambitions. A report found that only 4% of sustainability programs end in success.6 A probable cause for the failures of sustainability transformations is that many overlook the power of people. Research from EY and Oxford Said Business school, points to employees as an often-untapped repository when going through transformation. This study found that organisations who put humans at the centre of their transformation journey are 2.6 times more likely to be successful than those that do not, increasing their chance of successful transformation from only 28% to 73%.7 As such, ensuring that people are put at the forefront for sustainability transformations, in addition to being empowered and equipped to make more sustainable decisions, is critical to actualising success in this space. Thus, in this article we explore how organisations can put humans at the centre of sustainability transformations.

Ignite behaviour change to achieve sustainability ambitions

Whilst systemic action plays a significant role in sustainability transformations, systemic change can only be realised when individuals take action. International Panel for Climate Change (IPCC) predicts that 40% to 70% of net-zero transformations will be about entrenching sustainable behaviours and business models, rather than solely focussing on technological innovations.8

In essence, it is the small day-to-day behaviours of people that coalesce into impactful change. Studies also show that employees have a desire to deliver on sustainability ambitions, with 63% wanting to learn green skills to become more valuable in the workplace.9 Studies show that 88% of business school students consider learning about social and environmental issues in business a priority, with 67% wanting to incorporate environmental sustainability into their future jobs.10 However, as with any behaviour change, an understanding of the benefit of behaviour and having the intention to engage in behaviour is not enough. Behaviour change frameworks, such as the Capability, Opportunity, Motivation, Behaviour (COM-B) model highlight how this behaviour-intention gap arises and what is needed to shift behaviour. Specifically, this model demonstrates that capability, opportunity and motivation are crucial to behavioural change.11 These three factors have a dynamic relationship and can either sustain or block habit formation.  As such, leaders must consider how they can break down break any barriers to their people’s motivation and capability and provide opportunity to achieve sustainability ambitions.

  • Capability:

    • Refers to an individual’s psychological and or physical capacity to participate to change.

  • Opportunity:

    • Refers to external factors that make a behaviour plausible.

  • Motivation:

    • Refers to the conscious and unconscious cognitive processes that direct and inspire behaviour.

Creating an environment where sustainable behaviours are inevitable

Having the systemic structures in place which make sustainable behaviours and decision making instinctual for employees are critical to successful sustainable transformation. Below are methods and considerations that can be used to unlock the power of people:

1. Bolster capability: consistency and congruency in messaging and lived experience ​

It is important that sustainability is not seen as an ad-hoc initiative but embedded into how an organisation operates. Leaders must role model sustainable actions and advocate for change. In doing so, it signals to employees that contributing to sustainable outcomes is possible. This could start with discussion forums and employee awareness campaigns, to ensure that employees understand how sustainability works in a way that is authentic to the organisation. It is also key to upskill people to meet sustainability deliverables. For this behaviour change to occur, it must be evident to employees that there is an investment in their skills to contribute and thrive in the green economy.

2. Creating opportunity:

Developing people’s capability is just the first step. It is vital that organisations tap into the care and energy that already exists within people surrounding sustainability challenges. Organisations must create opportunities to actualise business and employee ambitions. To do this, leaders must create clear systems and channels with easily identifiable deliverables that encourage unabating transformation. A mature approach to creating opportunity is empowering employee activists to create communities that boost engagement around sustainability and effectuates corporate governance. For instance, the implementation of a sustainability strategy that is authentic to an organisation exemplifies the mature approach. Harnessing the power of employee activism creates the opportunity to leverage the skills of employees in a way that meets sustainability targets.

3. Provide motivation: incentivising sustainable behaviours

Reward, renumeration and recognition are key catalyst for behaviour change. Not only do they signify importance, but they encourage behaviour change.  Sustainability should be embedded into the process end-to-end. Organisations must consider how to reward employees for engaging with sustainable behaviours that contribute to achieving organisational sustainability commitments. For example, the use of eco-friendly corporate gifting. Great ways organisations have motivated more sustainable behaviours is through incentivising greener commuting or leveraging technology to look at individual and team carbon footprints and creating rewarded competitions in carbon footprint reduction.  

  • References

    1. “Net Zero Review Final Report,”Gov.UK  19 October 2021 © Crown Copyright, accessed 2nd November 2022.
    2.  “The Comprehensive Business Case for Sustainability,” Harvard Business Review, October 21, 2016 © 2022 Harvard Business School Publishing, accessed 2nd November 2022.
    3. “How to attain purpose-led business transformation”,  EY Website,  29 September 2022,  © 2022 Ernst & Young LLP, accessed 2nd November 2022.
    4. “EY Future Consumer Index 2021”, EY website, 5 march 2021, © 2021 EYGM Limited, accessed 2nd November 2022.
    5. Is your ESG data unlocking long-term value?,” EY Website, 3 November 2021, © 2021 EYGM Limited, accessed 2nd November 2022.
    6. “Transforming Business for a Sustainable Economy Bain,” Bain Website  1 August 2018, © 1996-2022 Bain & Company, Inc, accessed 2nd November 2022.
    7. How do you harness the power of people to double transformation success?”, EY Website, 20 October 2022, © 2022 Ernst & Young LLP, accessed 2nd November 2022.
    8. “Emissions Gap Report 2021,” UN environment program website,  26 October 2021, © 2021 United Nations Environment Programme, accessed 2nd November 2022.
    9. “Future of the sustainable workplace,” Unily website, 20 October 2020 © 2022 Unily, accessed 2nd November 2022.
    10.  “The Next Phase of Business Sustainability,” Stanford Social Innovation Review website, Ó 2018 by Leland Stanford Jr. University, accessed 2nd November 2022.
    11. 1.    “The behaviour change wheel: A new method for characterising and designing behaviour change interventions,” Implementation Science website , 23 April 2011 © 2022 BioMed Central Ltd, accessed 2nd November 2022

     

Summary

Meeting sustainability ambitions will continue to be prioritised on the corporate agenda. Therefore, putting humans at the centre of sustainability transformations will be essential in creating an environment that makes sustainable business actions inevitable. To ensure sustainable efforts are not fruitless and ineffectual, organisations should use their people to unlock their ability to create a better world for society and future generations. 

About this article

By Shaun Scantlebury

Partner, People Advisory Services, Ernst & Young LLP

Leads EY’s UK Diversity and Inclusion Advisory team. Focused on talent management, change and inclusion. On the Leadership 2025 advisory board, promoting board level diversity in social housing.