Why Companies Aren’t Living Up to Their Climate Pledges

Organizations are increasingly making firm commitments to sustainability. However, new research conducted by L.E.K. Consulting suggests many of these organizations are struggling to deliver on their commitments. Setting and balancing priorities is the main sticking point. Fifty-eight percent of executives said there are “significant differences of opinion within the leadership team” on balancing short-term priorities with long-term ESG goals. Boards and executives are aware of these risks, but often lack metrics or KPIs to track progress. Only a quarter (27%) of companies have any enterprise wide ESG KPIs in place, and fewer still have a full set in place (just 3%). Without such metrics, companies will continue to struggle to align executive remuneration with ESG targets. The authors offer five remedies to help companies get back on track: develop a shared vision for sustainability; invest in education to drive needed understanding and skills through the company; analyze…

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This article was written by John Goddard and originally published on hbr.org