The Role of CPOs in Sustainability Leadership
Sustainability will disrupt Australian businesses. If it’s not happening to your business today, it will happen soon.
Unlike previous disruptors, such as digital technology which was an enabler, sustainability is about values and behaviours. This is the core responsibility of Chief People Officers, so sustainability represents a unique opportunity for them to lead their organisations and make a real difference.
This was the focus of the discussion at the round table Williams Hall hosted late last year. The CPOs in attendance were from a wide range of sectors, but there were many shared experiences: they’re at the beginning of their sustainability journeys and are in a unique position to transform their organisations using culture and values.
Purpose first, then business
As custodians of corporate behaviours, CPOs can take their executives on the journey to place sustainability at the heart of the organisation’s mission. Our round table attendees recognised this could mean a significant change in attitudes for some executives, who for decades have worked inside a system that viewed people and the planet primarily as resources that deliver profits.
CPOs can help executives understand how sustainability aligns with corporate purpose. How can we do business without doing harm? How can we ensure that we’re doing good for the community, the planet and shareholders?
Our round table attendees agreed that their companies needed to focus on embedding sustainability into their core business instead of trying to change things that aren’t theirs to change. For instance, it would be more impactful for a meat processing company to develop sustainable livestock or agriculture practices and be a fast follower in adopting non-toxic or biodegradable packaging once its supplier develops those products, than if it were to try and invent new packaging itself.
One of the most effective ways CPOs can influence a company's culture is with the people they recruit. And you may find you're kicking at an open goal if your organisation has a credible, deliverable sustainability strategy.
Our attendees agreed this was essential when hiring the next generation of leaders. Potential new recruits, fresh out of university, want to know what you're doing to make a difference, what you're changing to make a positive impact and what your organisation has already achieved.
Companies with a track record of meaningful action on sustainability will have an advantage in attracting the best talent. That new generation, bringing its own values and expectations, can further embed the sustainability culture across the whole business.
Change starts from the top
Of course, creating a sustainability-first culture goes beyond recruitment, and many of the CPOs at our round table agreed they have a job to do at the top of their organisations too.
One suggestion from the round table was for CPOs to get their CEO onto panel discussions about sustainability. Nothing focuses the mind quite like being asked to speak publicly on an issue, and it’s also a chance to learn and embed those values at the top of the organisation.
That said, sustainability can’t just be the job of the CPO, but it's also an opportunity to demonstrate how you can help redefine your company's values and change its behaviours to meet future challenges.
And it's a change that's unavoidable. The Federal government has mandated environmental targets, and businesses will soon need to show compliance. That's also an opportunity to get ahead of the game, to embed sustainability as a core value, and drive a change that will be good for your business, for yourself, and for your planet.