On November 12, 2024, Boards Impact Forum in collaboration with the Scandinavian Executive Institute hosted the webinar titled “Embedding Sustainability and SDGs.” The event focused on the crucial challenge of embedding sustainability into every facet of an organization to enhance performance and secure long-term success.
The renowned sustainability leader, Pia Heidenmark Cook, also introduced her book, drawing on her extensive experience at IKEA to provide practical tools, strategies, and solutions for overcoming common hurdles in sustainability implementation. She was followed by the experienced NED and chair Julie Baddeley (UK) and Lars Husberg (Finland).
Presenters and Panellists:
- Pia Heidenmark Cook Former CSO Ingka/IKEA. NED at Bupa, Origin Materials and MAX Burgers. Senior Advisor at Eurazeo Planetary Impact Fund and Tenet. Author of Embedding Sustainability: How to drive organisational transformation;
- Julie Baddeley, one of the UK’s most experienced women directors having served in both an executive and non-executive capacity on the boards of leading public companies, as well as major public sector organisations, and across a range of sectors including consumer, retail, industrial, financial and professional services. Chair of the Climate Governance Initiative;
- Lars Husberg, Chairman of the Board in three private and family owned companies in Finland. He is also a Partner at Boardman, with a mission to support owners, board members and management teams in their mutual collaboration and decision-making processes. Lars is a strategy and business transformation practitioner. He has successfully led transformations as CEO, in other operational senior positions, as advisor to CEOs and now as chairman and member of boards.
Moderation by Fernanda Torre, Operations Director Boards Impact Forum and NED and Liselotte Engstam, chair of Boards Impact Forum and professional NED and chair.
Table of Contents
Key Takeaways and Integration Strategies
The webinar highlighted several crucial points for board directors, emphasizing the importance of integrating sustainability into core business strategy. Speakers stressed that sustainability should not be treated as a separate initiative but as an integral part of the organization’s long-term viability and competitiveness. Pia Heidenmark Cook shared insights from her experience at IKEA, noting, “Success breeds success. Once we really got sustainability into the business plan, we started to talk budget and choices.”
This underscores the need for practical approaches to integration, such as using future and foresight tools to identify sustainability as a value creator, integrating sustainability into annual business plans and budgets, starting with pilot projects to demonstrate success and build momentum, and creating comprehensive transition plans.
Leadership and Courage in Sustainability
Implementing sustainability requires courageous leadership from board members and executives.
The session had a panel discussion with the board directors Julie Baddeley, Lars Husberg, and Pia Heidenmark Cook, also herself a board director. At the panel speakers emphasized the need to set ambitious goals, such as 100% targets, to drive organization-wide change. Julie Baddeley highlighted the potential need for short-term sacrifices, stating, “You might have to sacrifice some short-term profit… in order to protect that long-term viability.” This approach requires a commitment to sustainability goals even when faced with challenges and a willingness to increase board engagement through more frequent meetings. , Lars Husberg emphasized this point, saying, “We need more frequent board meetings. We cannot just meet six to eight times a year.”
Overcoming Barriers and Building Competence
The webinar also addressed strategies for overcoming barriers to sustainability integration. These include understanding the true barriers within the organization, finding creative ways to allocate resources and make decisions, educating board members, and aligning key stakeholders.
To improve board competence in sustainability, the panelists recommended providing ongoing education and training for board members, considering the creation of dedicated sustainability committees, and bringing in external experts to provide insights and guidance. This approach aims to ensure that boards are well-equipped to navigate the complex landscape of sustainability and make informed decisions that balance short-term profitability with long-term sustainability goals.
Balancing Short-term and Long-term Perspectives
A key theme throughout the webinar was the need for boards to balance short-term profitability with long-term sustainability. The panelists emphasized that recognizing sustainability as crucial for long-term viability is essential. This may require boards to be prepared to make necessary investments and potentially sacrifice short-term profits.
Lars Husberg shared the importance of working with scenarios and using foresight as tool, to create alignment between the directors in the board. Furthermore, the panel also highlighted the importance of looking for opportunities arising from sustainability trends, such as in clean tech, which can create new avenues for growth and innovation.
Poll Results and Participant Insights
During the webinar, a poll was conducted to gauge the current state of sustainability integration among participating organizations. The results revealed that 69% of respondents attending the event believed their boards were effectively integrating sustainability into the core business strategy. This positive response indicates a growing awareness and commitment to sustainability at the board level.
However, the poll also showed mixed results regarding board competence in sustainability matters, with some participants expressing neutrality or agreement on whether their boards possessed the necessary expertise. These findings highlight both the progress made in sustainability integration and the ongoing need for board education and skill development in this area.
Conclusion and Next Steps for Boards
The webinar concluded by emphasizing that integrating sustainability into core business strategy is a complex but necessary task for boards. It requires courageous leadership, a long-term perspective, and continuous learning. By taking a proactive approach and using practical tools and strategies, boards can effectively guide their organizations towards a more sustainable future.
The speakers encouraged participants to join Boards Impact Forum or other chapters of the Climate Governance Initiative for ongoing insights and support, as well as thanked again the support from the Scandinavian Executive Institute.
About Boards Impact Forum and the blogpost
Events arranged by Boards Impact Forum in collaboration with World Economic Forum (Non Profit Board Network, partnering with the Scandinavian Executive Institute).
This blogpost is also shared at the blog of of Digoshen, www.digoshen.com.
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