State of the sustainability profession

Only 6% of businesses link pay to sustainability targets – ISEP says ‘financial incentives need to be playing a role’
Katie Hill - Editor-in-Chief, My Green Pod
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Only 6% of sustainability professionals say their organisation links remuneration to performance on green targets, according to a new report by The Institute of Sustainability and Environmental Professionals (ISEP) – formerly known as IEMA.

This comes despite green jobs growing at four times the pace of overall UK employment, and the net zero economy growing three times faster than the overall UK economy – contributing over £80bn last year.

ISEP CEO Sarah Mukherjee said businesses often link pay to sales targets, customer experience and operational metrics – and if we are going achieve our net zero targets and other crucial environmental outcomes, financial incentives need to be playing a role.

The latest State of the Profession report, based on a survey of ISEP members and interviews with industry leaders, explores the growing role, remit, responsibilities and impact that sustainability and environmental professionals are playing in organisations across all sectors of the economy.

Value & risk

According to the survey, the sustainability function within organisations is increasingly creating as well as protecting value, with 30% of professionals now contributing to Product and Service Innovation while 66% influence Strategy and Research.

However, most focus remains on disciplines that support value protection, such as Reporting and Disclosure (79%), Compliance (76%) and Risk Management (68%).

Only 6% of sustainability and environmental professionals say they work in organisations where remuneration – for relevant roles – is directly linked to performance on sustainability and environmental targets.

‘Green jobs are growing at three to four times the rate of the rest of the economy and for sustainability professionals, their responsibilities and influence are growing. More than 40% of survey respondents have experienced a change in remit in the past year.

‘This dynamism is driven by a combination of factors, from the acceleration of the net zero economy to the increasing pressure of regulatory reporting and compliance across emissions, waste, pollution and other environmental performance measures.

‘Hitting those green targets is vital to the reputation of businesses. However, there is also a growing recognition that the role of sustainability and environmental professionals is about more than just protecting value and mitigating risk.

‘They possess the knowledge, skillset and technical discipline to add value to business in all kinds of ways – from improving efficiency and future proofing supply chains through to influencing business strategy and supporting product and service innovation.’

LAILA TAKEH
State of the Profession author and ISEP Fellow

Leadership & success

A key insight from this unique survey is an emerging link between the role that business leaders play in being visible champions on sustainability and organisational success in delivering on sustainability.

80% of the organisations with the highest level of greenhouse gas emissions reduction are led by CEOs regarded as ‘leading, visible champions or proactively supporting sustainability’.

Fewer than 2% of organisations cut sustainability budgets in the past year, with almost half actually increasing their spend. This is despite current macro-economic and geopolitical influences putting pressure on businesses to deprioritise sustainability.

Measuring impact

More than 40% of survey respondents report that their organisation does not currently measure water consumption for sustainability purposes, while over 70% of relevant organisations don’t measure biodiversity net gain or believe it is not a material issue.

More than a quarter of sustainability professionals (28%) are working in organisations that still do not measure and report on greenhouse gas emissions.

But of the 72% that do, more than two-thirds measure Scope 3 emissions (indirect emissions such as those in supply chains) in addition to Scope1 & 2 direct emissions.

State of the Profession author and ISEP Fellow, Laila Takeh, said the report paints a picture of a dynamic and rapidly evolving sustainability and environmental profession.

‘Sustainability professionals often tell us that support from the highest levels of an organisation can be crucial to their success.

‘The data seems to back this up and indicates that 80% of the organisations with the highest level of greenhouse gas emissions reduction also have CEOs that are regarded as ‘leading, visible champions or proactively supporting sustainability’.

‘However, the data also tells us that very few organisations are linking staff pay to success on sustainability.
‘It seems like a no-brainer, if we are going achieve our net-zero targets and other crucial environmental outcomes, financial incentives need to be playing a role.

‘Businesses often link pay to sales targets, customer experience and operational metrics.

‘Yet based on our survey, only 6% of organisations with sustainability professionals link remuneration to sustainability targets.’

SARAH MUKHERJEE
ISEP CEO

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