The hidden disconnect in corporate sustainability goals
Businesses face more pressure than ever to adopt greener practices in the race for sustainability. The polished sustainability reports and ambitious Net Zero pledges mask a sobering reality because corporate sustainability hardships due to insufficient resources and misaligned strategies and leadership blind spots.
A new report titled The True State of Sustainability reveals the stark challenges that are faced by sustainability leaders across industries and shows the difficulties in both manufacturing and financial services. The findings reveal a disconnect between corporate ambition and functional reality based on 50 in-depth interviews and survey responses from over 400 senior sustainability professionals: the research zeroes in on the important gap that exists between what companies aspire to achieve and what is actually being im
While 80% of companies express a genuine commitment to sustainability, this commitment often stops short of the boardroom. Only 29% of sustainability leaders believe their initiatives align with broader commercial objectives. The result? Teams tasked with steering companies toward a greener future are left grappling with conflicting priorities and a lack of strategic integration.
“Without commercial alignment, sustainability risks becoming an isolated effort—seen as a cost center rather than a driver of value,” notes Gus Bartholomew, Co-Founder of Leafr, the report’s publisher.
The report highlights that 75% of sustainability leaders say their teams are under-resourced, with many feeling isolated and unable to implement meaningful change. Instead of driving innovation, sustainability teams spend most of their time gathering data and reporting, a symptom of inadequate systems and siloed functions.
This lack of resources has a ripple effect. Confidence in achieving Net Zero goals is low, with 75% of respondents doubting their companies’ ability to meet these critical targets. “It’s hard to see progress when you’re tasked with delivering transformational results on a shoestring budget,” said one survey participant.
Another significant obstacle is a lack of leadership awareness. A staggering 89% of respondents believe their executive teams are unaware of the fines, regulatory risks, and long-term costs tied to sustainability non-compliance. This short-sightedness not only exposes businesses to penalties but also undermines the credibility of their sustainability commitments.
Sustainability must become a central concern for businesses to thrive in the next decade. Regulatory frameworks are being tightened and consumer expectations are being raised and greater accountability is being demanded by stakeholders. Losing their competitive edge is what companies risk if they fail to address these challenges.
The business case for sustainability is clear: companies can reduce costs and improve their reputation while also helping the environment. Companies that adjust sustainability initiatives with commercial goals successfully report important progress in their efforts and achievements. By driving innovation and resilience for long-term profitability, these organizations use sustainability as a calculated enabler.
The report diagnoses problems and offers solutions.
With optimism building around the UK’s Labour-led government, 40% of respondents believe new policies could add momentum to sustainability efforts. However, businesses must act proactively to align their strategies with these changing dynamics, ensuring sustainability is not just a buzzword but a cornerstone of their operations.