Pushing sustainability initiatives to the front of strategy 

Marsh McLennan’s Chief Sustainability Officer Forum explored how organisations can link sustainability initiatives to business objectives, engage with internal and external stakeholder and navigate the changing geo-political landscape to deliver lasting business growth

Today's global environment makes for a challenging time for organisations to develop and execute sustainability plans, and to stay competitive in a rapidly evolving market.

In an uncertain political and regulatory landscape, integrating clear measures of return on investment (ROI) into a business’s core strategy – and engaging internal and external stakeholders alike with clear messaging – is key to assessing the commercial value of sustainability initiatives. 

This was the theme of Marsh McLennan’s inaugural Chief Sustainability Officer Forum, which brought together leaders across a range of Marsh McLennan businesses, all on the front line of corporate sustainability and client engagement.

Sustainability in the political environment

Tim Penning, UK Sustainability Architect, Mercer and Dr Bev Adams, Head of Client Engagement, Marsh started the discussion by sharing the themes they consistently hear from Chief Sustainability Officers. The current areas of focus are the changing geo-political landscape, the need to prove the return on investment of sustainability related activities, the challenges of creating and maintaining engagement with internal and external stakeholders and navigating changing reporting and regulatory requirements.

Chris Coppock, Head of Geopolitical & Economic Risk Analysis, Marsh Credit Specialties, noted that despite the recent World Economic Forum Global Risk Report highlighting “a sea of climate change issues” that participants acknowledge as threatening global stability and progress in the longer-term, these issues are often de-prioritised in by perceptions of more pressing short-term concerns.

The challenge, he said, is that in a year of major governmental change globally, “climate issues are not front of mind for the electorate, and not just in the United States.”  However, he noted that some regions, such as the Middle East and China, are investing heavily in renewables and sustainability, and there is a collective will to identify alternative economic strategies even if climate policy trends in other parts of the world may shift significantly in the next few years.

The evolving regulatory landscape was also the key focus for Ed Woolcock, Senior Managing Consultant - Climate & Sustainability Strategy at Marsh Advisory.

“It's been a turbulent few months from a regulatory perspective,” he said. “A greater focus on defence and economic competitiveness in both the EU and US has come at the expense of sustainability.”

He pointed out the challenges of managing global regulatory uncertainty, especially for cross-border operations, with the potential for fragmentation and divergence in sustainability regulations particularly as the US takes a different direction. 

Internal engagement around sustainability

Tricia Maskell, Head of Employee Change Communications in Mercer’s Impact team, cited the potential benefits of involving different people from the organisation to boost buy-in, commitment and accountability for sustainability issues.

“Get their input, ask for their feedback and test things with them, which then helps you to design or evolve your sustainability strategy and plan,” she said.

She also stressed the need for a consistent narrative that asks the ‘what, why, how, when’ questions about a sustainability engagement strategy. 

Balancing sustainability with business objectives

According to Anthony Bice, Partner, Insurance & Asset Management, Oliver Wyman, the “inexorable momentum towards a more sustainable future” a few years ago led to companies making commitments that often lacked a clear understanding of deliverability and ROI.

However, he noted that in the last 12-18 months there has been a growing focus on ensuring that sustainability initiatives have a positive, measurable business impact. He advocated for a nuanced approach to sustainability that looks at both financial and non-financial impacts, using a balanced scorecard approach. 

“It’s hard to fully measure ROI on just a financial model,” he noted, referencing factors such as employee retention, customer stickiness, and building relationships that may lead to future commercial opportunities.

Applying the issues in practice

The event included two ‘breakout’ sessions, allowing attendees to apply their knowledge and collectively workshop solutions to sustainability challenges. 

The first session included a discussion of ways in which sustainability can be measured to show its tangible ROI. One suggestion was to understand that sustainability can be monetised if B2B customers value it. Salespeople can incorporate sustainability issues into how they sell their product, which could boost customer stickiness and loyalty.

Maskell, like Bice, explained the benefits of a balanced scorecard to create value for the organisation, engaging with managers to win their buy-in and pushing the consequences of not having an effective sustainability policy.

“Authenticity is key” was another key message that emerged, to ensure that sustainability ventures can be linked back to a strategic, corporate purpose.

Maskell spotlighted how communications teams need to be agile depending on what is making the headlines, but also to stay transparent and consistent in messaging. “If your story has changed, don’t be afraid to say why it is changing,” she said. 

The second breakout group analysed a fictitious case study of a luxury goods company that was considering a public listing in 2025. Participants discussed what they would want to know about the company and the kinds of sustainability-specific issues on which it might need to focus ahead of the listing.

Suggestions included  the imperative to assess the firm’s regulatory obligations in each of the prospective listing locations – something that requires a better understanding of the company’s profile and size. Another consideration raised was the need to understand the sentiment of the firm’s customer base with regards to sustainability, given many luxury shoppers are thought to prioritise sustainability values. Participants also agreed that a clear understanding of the firm’s future strategy and target markets was required, reflecting the fact that sustainability strategies cannot exist in a silo and must connect back to broader corporate objectives.

Final reflections

Bice highlighted the importance of creating a compelling and rigorous business case for sustainability efforts, framing why they are necessary and the impact they can have on a business’s commercial success. 

Maskell similarly stressed the importance of tying engaging sustainability stories to business success, giving different employee groups clear roles in how they can contribute to building that narrative. “Otherwise, everyone will have good intentions, but they don't know what they're doing. We need to turn the dialogue into action,” she said.

Woolcock then zeroed in on the varying weight attached to sustainability in different markets, and therefore its differing impact on brand success in those markets, with reference to the fictional luxury brand discussed in the breakout session.

Finally, Coppock noted the wide range of perspectives that delegates had discussed, such as gender considerations, supply chain sustainability and consumers’ attitudes to sustainability levels – which “speaks to the scope, the challenge and the complexity of this work.”

Clearly, there are challenges in evaluating a business’s sustainability, but there are reasons for optimism. Many businesses and clients alike prioritise sustainability values and, with a strategy for ROI in place, the positive impacts of this sentiment can be measured and heralded.

How can we help you?

If you would like to talk to us about how we can help with your sustainability strategy, get in touch today.
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