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Strategic Sustainability

Integrating Sustainability

Integrating Sustainability Is Key

Sustainability is a crucial consideration for organisations of all shapes and sizes.

This benefits of embedding sustainability in an organisation are well documented. They include cost efficiencies, reduced cost of capital and greater access to customers and markets. Companies with ESG embedded into their organisation outperform their non-ESG counterparts.

Many companies still struggle to shift from setting sustainability ambitions into driving tangible actions. A recent report revealed that the average target net-zero date for FTSE250 companies had been delayed by 13 months, with like-for-like emissions increasing compared with the previous year.

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The Sustainability Paradox

So why don’t the financial incentives of sustainability drive meaningful action?

An important factor is how Sustainability (as a discipline) is established within an organisation.

The table below demonstrates this by comparing Sustainability to Finance as a function within an organisation.

Aspect

Finance

Sustainability

Maturity

Well-established discipline in most organisations

Often not an established discipline; typically managed by a small team or an individual

Accountabilities

Clear hierarchies and accountabilities

Variable and often incomplete; e.g. only 37% have a board member responsible for sustainability

Position in Business Model

Embedded alongside other core functions

Often siloed from other core functions

Engagement from other business functions

Integrated into many roles through budgeting, cost control, and profit-driving responsibilities

Non-sustainability roles typically don’t have sustainability responsibilities or activities
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The Solution: An Integrated Business Model Approach

To bridge this gap, organisations should adopt an integrated business model approach to sustainability. This approach transforms sustainability from a siloed, specialist subject into a lever that enhances the organisation’s overall operations. Key features of an integrated business model include:

  • Understanding organisation wide of the importance of sustainability
  • Clear sustainability accountabilities at all levels of the organisation
  • Inclusion of sustainability considerations in decision making by default
  • An intentional “tilt” in the organisation’s products/services roadmap towards sustainability
  • Organisation-wide engagement and understanding of sustainability objectives
  • Alignment of policy and processes to sustainability integration
  • Staff measurement and remuneration linked to sustainability performance
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Benefits of Integration

An integrated business model is more likely to drive action because:

  • When employees are measured on Sustainability within their role it incentivises them to act.
  • Insight into the impact of operating Sustainability on business performance can enhance business decision making
  • Cross-pollination between sustainability and non-sustainability activities helps identify risk and opportunities
  • Accountabilities can link to those who directly influence outcomes (e.g. procurement professionals influencing supply chain decisions)
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Case Study: Ministry of Defence (MOD)

Cala Sustain helped our client the Ministry of Defence implement an integrated business model approach to Sustainability.

The UK Government has a legally binding target to become Net Zero by 2050. It has flowed this obligation to all Government Departments including the MOD.

Defence equipment conservatively accounts for 35% of all UK Government emissions. These are emissions from equipment, platforms and purchasing activities.

The MOD required support to create a carbon reduction plan for all of its activities from its +£200bn spend supply chain.

We worked with MOD to achieve an integrated business model by:

  • Building solutions that added value to operational staff beyond carbon reduction
  • Integrating processes that provide significant time savings compared to a siloed approach
  • Engaging stakeholders to discover and leverage ways to improve ROI from carbon data

We provided a clear set of recommendations along with a roadmap of activities that will enable sustainability to become integral to defence acquisition. Read the MOD Case Study »

By integrating sustainability in to their business model organisations can improve both their environmental and overall business performance.

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Sources

https://www.kroll.com/en/about-us/news/kroll-study-shows-stronger-investment-returns-companies-high-esg-ratings
https://www.edenseven.co.uk/ftse250
https://www.edie.net/less-than-one-in-ten-uk-businesses-have-a-large-sustainability-team-survey-finds/
https://www.fmj.co.uk/over-two-thirds-of-ceos-view-sustainability-as-a-growth-opportunity/#:~:text=The%20survey%20found%20that%20the,decarbonisation%20(18%20per%20cent).

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Find out how we can help

If you think we could be a good fit for your organisation or project get in touch.
Get in touch

Why Choose Cala Sustain?

  • Passionate about sustainability
  • Expertise and professionalism
  • Proven track record
  • Bespoke quality service
  • Focused on delivering long term value

Why Choose Cala Sustain?

  • Passionate about sustainability
  • Expertise and professionalism
  • Proven track record
  • Bespoke quality service
  • Focused on delivering long term value

Second to None

We have collaborated successfully with the Cala Sustain team on a number of occasions. We have always found them to be knowledgeable, reliable, enthusiastic and very experienced. 

In Defence, their understanding of environmental and sustainability policy and standards is second to none. 

Marc Brule-Walker
Integrated Logistic Support Manager
Red Scientific

Always Add Value

The Cala Sustain team has been our trusted support service for all things “responsible business”. They are able to quickly understand and meet our challenges, understand our business and they always add unexpected value. 

The Cala Sustain team is trustworthy, reliable and knowledgeable. I can’t recommend them highly enough. 

Jerry Beeston
Facilities Manager
Nisbets Plc

We couldn’t have done it without you

I just wanted to thank you for all the support you gave us with the renewal of our Royal Warrant.

We all breathed a big sigh of relief when we found out that we had been successful, and we couldn’t have done it without you!

Kate Gough
General Manager
Mitre Linen

Great people to do business with

Mark’s knowledge and understanding of corporate sustainability issues is extensive. His ability to provide practical solutions to difficult problems through the application of analytical and lateral thinking makes him a great person to do business with. 

Phil Harding
MBE

In depth Knowledge

Mark has substantial knowledge and experience of environmental and sustainability management issues, an in-depth knowledge of the Ministry of Defence’s processes and procedures, and a sound knowledge of the wider defence industry. 

Tommy Mason
QINETIQ

Great Partner to work with

Cala Sustain have been a great partner to work with on Sustainable Procurement projects, including for the NHS, Defra and under a variety of Frameworks. They demonstrated a wealth of knowledge, experience, tenacity and a clear understanding and practical application of the client’s needs.”

Philip Duddell
Sustainable Procurement Limited

Would recommend them

We’ve worked with the team at Cala Sustain over the last few years. We’ve valued their expertise, plus their highly professional and ethical approach and would recommend them to any organisation seeking to develop a company-wide sustainability strategy.

Matt Roper
GREENBUYING

Second to None

We have collaborated successfully with the Cala Sustain team on a number of occasions. We have always found them to be knowledgeable, reliable, enthusiastic and very experienced. 

In Defence, their understanding of environmental and sustainability policy and standards is second to none. 

Marc Brule-Walker
Integrated Logistic Support Manager
Red Scientific

Always Add Value

The Cala Sustain team has been our trusted support service for all things “responsible business”. They are able to quickly understand and meet our challenges, understand our business and they always add unexpected value. 

The Cala Sustain team is trustworthy, reliable and knowledgeable. I can’t recommend them highly enough. 

Jerry Beeston
Facilities Manager
Nisbets Plc

We couldn’t have done it without you

I just wanted to thank you for all the support you gave us with the renewal of our Royal Warrant.

We all breathed a big sigh of relief when we found out that we had been successful, and we couldn’t have done it without you!

Kate Gough
General Manager
Mitre Linen

Great people to do business with

Mark’s knowledge and understanding of corporate sustainability issues is extensive. His ability to provide practical solutions to difficult problems through the application of analytical and lateral thinking makes him a great person to do business with. 

Phil Harding
MBE

In depth Knowledge

Mark has substantial knowledge and experience of environmental and sustainability management issues, an in-depth knowledge of the Ministry of Defence’s processes and procedures, and a sound knowledge of the wider defence industry. 

Tommy Mason
QINETIQ

Great Partner to work with

Cala Sustain have been a great partner to work with on Sustainable Procurement projects, including for the NHS, Defra and under a variety of Frameworks. They demonstrated a wealth of knowledge, experience, tenacity and a clear understanding and practical application of the client’s needs.”

Philip Duddell
Sustainable Procurement Limited

Would recommend them

We’ve worked with the team at Cala Sustain over the last few years. We’ve valued their expertise, plus their highly professional and ethical approach and would recommend them to any organisation seeking to develop a company-wide sustainability strategy.

Matt Roper
GREENBUYING

Find out how we can help

If you think we could be a good fit for your organisation or project get in touch.
Get in touch
Strategic Sustainability

Making the case for strategic sustainability

What is sustainability?

The common definition of sustainability is development that meets the needs of the present without compromising the ability of future generations to meet their own needs.

Embedding sustainability into a business is proven to create a positive lasting impact on business performance. Business benefits of a strategic sustainability approach include cost savings, efficiencies, an enhanced reputation and greater return on investment (ROI). Increasingly businesses are coming round to the advantages of more sustainable operations.

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Benefits of embedded sustainability

Benefits of embedded sustainability

1.| Improved image and competitive advantage

  • The halo effect from a sustainability approach can be widespread from increased morale internally to customer loyalty and higher referral rates.
  • IBM’s 2020 consumer report showed 77% of those surveyed felt it was important that brands “are sustainable and/or environmentally responsible.”

2.| Improved risk management

  • Supply chains are vulnerable to many factors including climate change and conflict.
  • McKinsey reports that the value at stake from sustainability concerns can be as high as 70% of earnings before interest, taxes, depreciation, and amortisation (EBITDA). This highlights the substantial financial implications that sustainability issues can have on a business.
  • In the largest study on climate change data and corporations, 8,000 supplier companies (that sell to 75 multinationals) reported on their level of climate risk. Of the respondents, 72% said that  climate change presents risks that could significantly impact their operations, revenue, or expenditures.

3.| Attract the best talent

  • IBM’s Institute for Business Value found that over 70 percent of surveyed employees and job seekers believe “environmentally sustainable companies are more attractive employers.” And, almost half of those surveyed reported a willingness to take a pay cut to gain employment at these organisations.
  • Being more ‘sustainable’ has a positive effect on employee morale and can increase motivation.

4.| Improved Productivity

  • Improving productivity helps to improve efficiency, and conserve resources. This can reduce operational costs. 
  • Arabesque and University of Oxford analysed 200 studies and found that 90% concluded that good ESG standards lower the cost of capital. 88% concluded that good ESG practices result in better operational performance. 80% showed that stock price performance is positively correlated with good sustainability practices.

5.| Regulation compliance

  • Due to stricter regulations and standards across all industries and sectors it is crucial to focus on embedding sustainability into long term plans. 
  • Common examples of regulations are the landfill tax, ultra-low emission zones and a ban on single use plastic. Not only would non-compliance potentially lead to fines, it could damage the reputation and image of the business.

6.| Increased revenues

  • The plastic tax, introduced in April 2022, looks to tax any plastic manufactured, or imported into the UK that does not contain at least 30% recycled plastic. The UK government estimates that it affects around 20,000 packaging producers and importers.
  • By achieving the minimum of 30% of recycled plastic companies can limit the amount of tax they need to pay.
  • The University of Oxford and Arabesque reviewed the academic literature on sustainability and corporate performance. They found 90% of the studies analysed drew the conclusion that good
  • ESG standards lower the cost of capital. So it is cheaper for those organisations to finance operations and investments.
  • Better management of natural resources like water and energy can improve the bottom line. As can minimising waste.

7.| Attracts Investment and financial opportunity

  • Companies who actively develop their sustainability and have long-term plans are much more attractive to investors.
  • A 2021 BML study found that a quarter of UK investors plan to make an ESG investment by 2025.
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Overcoming barriers to implementing sustainability measures

The benefits of operating sustainably are well documented. Here we look at some of the challenges businesses can face in operating more sustainably and how to overcome them.

Overcoming a lack of focus and data

Embedding sustainability in a business takes an:

  • Understanding of the leavers you have available to help you streamline your organisation.
  • Clear targets. 
  • The ability to evaluate the  impact of the measures in place.

Often companies can try to address too many issues at once.

Overcoming a lack of focus can be as much about deciding what areas your organisation will not focus on, as much as what you will. 

Harvard Business Review suggest evaluating all of your sustainability measures against 4 criteria:

  • Purpose – what does the business stand for.
  • Business Value – what affects the bottom line.
  • Technology – what data do we have on our impact on the future.
  • Stakeholder – what are people trying to tell us.

This approach involves mapping environmental and social issues to the business activities that drive value creation, value capture and value preservation. These are issues like: cost structure, a customer’s willingness to pay, pricing power, and the valuation of assets and liabilities. 

We can support you to understand the relevant sustainability risks and opportunities to your business. We’ll help you to determine where to focus your efforts to operate more sustainably.

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Overcoming financial barriers to entry

Real, long-term change towards sustainability can require a significant investment of both time and money. Whilst consumers say sustainability is important to them they may not be prepared or able to pay more. 

This is where the business value perspective comes in. It is important to look at the sustainability measures which will have a positive impact on your bottom line. This approach can be ‘Win Win’ because it improves your sustainability credentials and saves the organisation money – increasing profitability. 

Sustainability measures that deliver value to the bottom line may be obvious, for example when a company has large energy expenses or exposure to regulations and compliance. Some value may not be immediately obvious or might be harder to measure but can still be substantial. So some connections need to be explored to determine the value.

For example greater environmental sustainability can insulate your business against negative market movements, saving money. Or using cleaner energy sources / renewable energy could protect a business from energy price volatility or fuel shortages, providing competitive advantage.

Walmart offers an example of a Business Value approach. In 2006 Walmart created a sustainability strategy with “zero waste” as its first objective. The zero waste measures that Walmart implemented included cutting fuel wasted by idling trucks, wasted electricity from lighting, and wasted packaging in its warehouses. This reduction in waste led to a reduction of costs. This cost reduction in turn helped Walmart deliver on its core value proposition of offering everyday low prices.

We can help you to:

  • Identify your business’s issues to determine where the opportunities for improvement are, and what needs to occur to make your business more sustainable.
  • Make these challenges a priority from both a sustainability and a commercial perspective. This will help you to recognise and manage risk, increase efficiency, revenue potential, growth, and other prospects.
  • Map the short and long-term ambitions for your sustainability vision, assess the risks, and address any gaps in delivery.
  • Deliver a robust sustainability programme that includes initiatives, enablers, milestones, key performance indicators and measurable targets that all help your business continually improve.
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Overcoming Supply Chain Challenges

An organisation’s supply chain is key to its sustainability strategy. Ethical trade ensures that products and services have not been produced at the expense of workers rights. 

Sustainable procurement integrates Corporate Social Responsibility (CSR) into your organisation’s procurement processes. 

To overcome supply chain challenges we work with you to:

  • Carry out a Sustainability Appraisal – Understand where you are now, your business sustainability strategy and your organisation’s goals.
  • Assess the upstream Environmental Social and Governance (ESG) footprint.
  • Define your vision and set your sustainability goals for procurement; Where, when, and how far?
  • Identify any vulnerabilities that you may have and how best to fix them.
  • Identify any human rights risks, allowing you to monitor, manage and report human rights issues.
  • Help to devise and implement policies and business principles that meet regulatory and customer demands.
  • Constantly look to sharpen policies and guidelines and embed skills that allow you to continue sustainable procurement practices.

Supply chains offer an area for companies to innovate and make a big difference to the people who work in them.

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Overcoming Technological Barriers

Implementing new technologies to support sustainability can be a significant hurdle, particularly if the organisation lacks the necessary expertise or resources.

Management systems are crucial for a business to maintain high standards in the workplace. ISO provides a framework to create an effective management system focusing on areas such as quality, environment, energy and health and safety. 

The ISO framework can be a powerful tool to help your organisation overcome technological barriers. ISO can:

  • Help your organisation to maintain the highest quality standards. 
  • Help you identify new opportunities for your business.
  • Record problems preventing them from recurring.
  • Help you gain access to new markets.
  • Boost marketing and sales, while improving customer satisfaction.

Read more on ISO Certification.

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Embedding Sustainability in your organisation 

Embedding sustainability can be difficult if employees and stakeholders are resistant to change. It may be that organisational processes are entrenched and difficult to adjust. Or that there are supply chain or reporting challenges. 

Overcoming this requires sustainability leaders to drive innovation, influence mindsets and enable others to contribute to sustainability goals.

This is where the stakeholder perspective comes in. If an organisation can tap into what people are trying to tell them they can develop a situational awareness that helps to detect issues.

Engaging with internal voices is key.

People in the organisation need to be involved in:

  • Identifying sustainability practices.
  • Assessing the viability and impact of those sustainability practices, use a matrix or a value lens approach to capture this.
  • Agreeing which practices will create a positive impact.
  • Piloting the approach and learning from failures and successes.
  • Fostering commitment, by communicating the purpose, allocating resources and acquiring the necessary talent.
  • Clarifying expectations.
  • Instilling a capacity for change.
  • Building momentum.
  • Developing new processes and systems.
  • Reinforcing the message, monitoring and communicating the results and adapting the plan as needed.

It is important to recognise that sustainability is part of a broad societal agenda. Companies that ensure sustainability is part of their purpose and operating model are more likely to thrive.

We can work with you to understand the sustainability risks and opportunities relevant to your business. Then we can use this information to develop and implement a business strategy that is tailored to the specific needs of your business.

 

Resources

https://embeddingproject.org/pub/resources/EP-Embedding-Sustainability-in-Organizational-Culture.pdf

https://hbr.org/2025/01/getting-strategic-about-sustainability

Find out how we can help

If you think we could be a good fit for your organisation or project get in touch.
Get in touch

Why Choose Cala Sustain?

  • Passionate about sustainability
  • Expertise and professionalism
  • Proven track record
  • Bespoke quality service
  • Focused on delivering long term value

Why Choose Cala Sustain?

  • Passionate about sustainability
  • Expertise and professionalism
  • Proven track record
  • Bespoke quality service
  • Focused on delivering long term value

Second to None

We have collaborated successfully with the Cala Sustain team on a number of occasions. We have always found them to be knowledgeable, reliable, enthusiastic and very experienced. 

In Defence, their understanding of environmental and sustainability policy and standards is second to none. 

Marc Brule-Walker
Integrated Logistic Support Manager
Red Scientific

Always Add Value

The Cala Sustain team has been our trusted support service for all things “responsible business”. They are able to quickly understand and meet our challenges, understand our business and they always add unexpected value. 

The Cala Sustain team is trustworthy, reliable and knowledgeable. I can’t recommend them highly enough. 

Jerry Beeston
Facilities Manager
Nisbets Plc

We couldn’t have done it without you

I just wanted to thank you for all the support you gave us with the renewal of our Royal Warrant.

We all breathed a big sigh of relief when we found out that we had been successful, and we couldn’t have done it without you!

Kate Gough
General Manager
Mitre Linen

Great people to do business with

Mark’s knowledge and understanding of corporate sustainability issues is extensive. His ability to provide practical solutions to difficult problems through the application of analytical and lateral thinking makes him a great person to do business with. 

Phil Harding
MBE

In depth Knowledge

Mark has substantial knowledge and experience of environmental and sustainability management issues, an in-depth knowledge of the Ministry of Defence’s processes and procedures, and a sound knowledge of the wider defence industry. 

Tommy Mason
QINETIQ

Great Partner to work with

Cala Sustain have been a great partner to work with on Sustainable Procurement projects, including for the NHS, Defra and under a variety of Frameworks. They demonstrated a wealth of knowledge, experience, tenacity and a clear understanding and practical application of the client’s needs.”

Philip Duddell
Sustainable Procurement Limited

Would recommend them

We’ve worked with the team at Cala Sustain over the last few years. We’ve valued their expertise, plus their highly professional and ethical approach and would recommend them to any organisation seeking to develop a company-wide sustainability strategy.

Matt Roper
GREENBUYING

Second to None

We have collaborated successfully with the Cala Sustain team on a number of occasions. We have always found them to be knowledgeable, reliable, enthusiastic and very experienced. 

In Defence, their understanding of environmental and sustainability policy and standards is second to none. 

Marc Brule-Walker
Integrated Logistic Support Manager
Red Scientific

Always Add Value

The Cala Sustain team has been our trusted support service for all things “responsible business”. They are able to quickly understand and meet our challenges, understand our business and they always add unexpected value. 

The Cala Sustain team is trustworthy, reliable and knowledgeable. I can’t recommend them highly enough. 

Jerry Beeston
Facilities Manager
Nisbets Plc

We couldn’t have done it without you

I just wanted to thank you for all the support you gave us with the renewal of our Royal Warrant.

We all breathed a big sigh of relief when we found out that we had been successful, and we couldn’t have done it without you!

Kate Gough
General Manager
Mitre Linen

Great people to do business with

Mark’s knowledge and understanding of corporate sustainability issues is extensive. His ability to provide practical solutions to difficult problems through the application of analytical and lateral thinking makes him a great person to do business with. 

Phil Harding
MBE

In depth Knowledge

Mark has substantial knowledge and experience of environmental and sustainability management issues, an in-depth knowledge of the Ministry of Defence’s processes and procedures, and a sound knowledge of the wider defence industry. 

Tommy Mason
QINETIQ

Great Partner to work with

Cala Sustain have been a great partner to work with on Sustainable Procurement projects, including for the NHS, Defra and under a variety of Frameworks. They demonstrated a wealth of knowledge, experience, tenacity and a clear understanding and practical application of the client’s needs.”

Philip Duddell
Sustainable Procurement Limited

Would recommend them

We’ve worked with the team at Cala Sustain over the last few years. We’ve valued their expertise, plus their highly professional and ethical approach and would recommend them to any organisation seeking to develop a company-wide sustainability strategy.

Matt Roper
GREENBUYING

Find out how we can help

If you think we could be a good fit for your organisation or project get in touch.
Get in touch