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01/05/2024
Elevate your sustainability maturity: An introduction
Use our Maturity Model to gauge exactly where your company stands on the sustainability continuum – and develop key action steps for reaching the next level.
Organizations of all kinds are under growing pressure from stakeholders to incorporate sustainability opportunities and risks into their business strategies.
This pressure is coming from all sides. Investors want greater transparency on sustainability programs and performance, while board members and C-suite executives are being held accountable for their companies’ initiatives. Employees, customers, and business partners want to know how the companies they work for or do business with are positively impacting the planet and society as a whole, and are making choices accordingly. Consumers, for example, are increasingly choosing more sustainable, ethically produced items even at higher price points, and employees are willing to take pay cuts to work for employers that align with their values.
All this means that as companies implement initiatives designed to meet these demands to improve the world around them, they are also creating value for their stakeholders. In fact, ESG factors are now often counted among the top key indicators of an organization’s long-term resilience, which can be a driving force behind sustainability strategy development and implementation. Corporations are setting goals, establishing metrics, disclosing data, and identifying related risks and opportunities – all in the name of positioning themselves for current and future success.
However, with sustainability still a fairly new concept for many, not all companies are at the same stage of maturity in bringing it into their business plans. In our experience so far, companies generally fall into one of three main stages: Novice, Supporter, or Gamechanger. Drawing from our deep expertise, we’ve designed an Sustainability Maturity Model that not only allows organizations to pinpoint their current position, but also charts a clear path for advancement. As we’ll explore, an early assessment can provide a clear understanding of where improvement is needed, which is critical to building a plan for mitigating sustainability-related stakeholder engagement and trust, and capitalizing on opportunities. By leveraging this tool, organizations can tap into proven strategies to elevate their ESG performance, unlocking tangible benefits and driving transformative impact.
Novice is the first category along the sustainability maturity spectrum, composed of organizations that are just beginning their ESG journey. At this initial stage, organizations may be implementing ESG initiatives in response to external forces – requests from investors, business partners, etc. Generally, their own understanding of the concept and the related frameworks is very limited, which presents an immense opportunity to build that foundational knowledge, set goals, and lay the groundwork for future sustainability initiatives. Novices may need help establishing their sustainability strategy and vision and putting the fundamental processes and governance structures in place.
Supporters understand the value of sustainability and its importance to their organizations, and are actively integrating sustainability principles into some areas of their operations. In this stage, they are working to further develop their foundational sustainability knowledge, establish strong frameworks, and refine their approaches to sustainability integration. The transition from reacting to external pressures has shifted toward an internalized drive, and with this momentum, organizations will deepen their engagement and expand their sustainability horizons.
At least for now, Gamechangers make up the smallest group of the Sustainability Maturity Model. These companies are at the forefront of innovation, and, as such, are visionaries in the ESG world, setting benchmarks and pioneering novel approaches. They already have extensive, comprehensive sustainability practices ingrained in their organizations, and continually elevate sustainability and responsible business practices. Gamechangers are adapting their business models to a low-carbon economy, identifying emerging sustainability trends, and planning their path forward for others to follow.
Explore the model
Ready to step further into the different areas that make up sustainability maturity – and assess your current status and plan your next steps? Explore our deeper-dive articles:
A proven, integrated sustainability methodology
Whether you are taking the first steps on your sustainability journey or your existing program needs an overhaul, CohnReznick can help. Using a proven, integrated methodology that combines our own sustainability experience with industry insights, we will help you effectively advance your sustainability initiative at each step of its lifecycle.
Our four-phase approach is built on value creation and impact throughout the journey, and includes:
- Phase 1: Assess sustainability current state, identify sustainability priorities
- Phase 2: Design sustainability strategy, roadmap, and KPIs
- Phase 3: Implement sustainability initiatives with governance, technology, and training
- Phase 4: Validate process and data and report progress against KPIs
With a 35-year track record in community investment and shaping governance strategy, CohnReznick tailors sustainability programs to meet industry-specific stakeholder requirements. Using a process rooted in advanced data analytics and exclusive primary research, we leverage a cross-functional team that delivers seamless execution and enables fast, integrated results for companies of all sizes and across all industry sectors.
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This has been prepared for information purposes and general guidance only and does not constitute legal or professional advice. You should not act upon the information contained in this publication without obtaining specific professional advice. No representation or warranty (express or implied) is made as to the accuracy or completeness of the information contained in this publication, and CohnReznick, its partners, employees and agents accept no liability, and disclaim all responsibility, for the consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this publication or for any decision based on it.