Do Businesses Actually Need a Sustainability Strategy?

In recent years, “sustainability” has moved from a corporate buzzword to a boardroom imperative. From startups to multinational corporations, businesses of all sizes are grappling with how to operate in a world facing environmental challenges, shifting expectations, and tightening regulations.

But the question remains: Do businesses actually need a sustainability strategy? Or is it just another expensive tick boxing exercise?

Let’s break it down.

What Is a Sustainability Strategy?

A sustainability strategy outlines a business’ plan of action to achieve their sustainability mission and objectives. Simply put, what are your sustainability impacts and how are you managing them? It goes beyond reports and ad-hoc initiatives. Instead, it embeds long-term thinking into the company’s operations, goals, and culture.

A well-crafted sustainability strategy often focuses on the three pillars of sustainability: environment, society and economics. And will include topics such as:

• Reducing environmental impact (carbon footprint, waste, water usage)
• Sustainable procurement and supply chains
• Social value, diversity, and community engagement
• Transparent governance and accountability

To learn more about how to develop a sustainability strategy, read our blog post about it here.

The Case Against a Sustainability Strategy

It’s worth acknowledging the scepticism. For some companies, particularly small businesses, building a formal sustainability strategy might seem like an added cost with no clear ROI. Others worry it distracts from core operations or serves as a PR tool without meaningful impact (also known as greenwashing).

And to be fair, without real commitment, a sustainability strategy can be just that: a document that gathers digital dust while business as usual continues.

The Business Case For Sustainability

Despite the concerns, more and more evidence suggests that sustainability is not just good for the planet and society—it’s good for business. Here’s why:

Client Demand

Customers and clients are increasingly choosing companies and brands that align with their values. Gen Z and Millennials, in particular, are more likely to support companies with strong environmental and social commitments.

Cost Savings

Energy efficiency, waste reduction, and streamlined operations often lead to lower costs. Sustainability initiatives can boost margins and operational resilience over time.

Regulatory Compliance

Governments around the world are introducing stricter environmental regulations. A proactive strategy helps businesses stay ahead of the curve and avoid penalties or reputational damage.

Talent Attraction and Retention

Purpose-driven companies tend to attract and retain talent better. Employees increasingly want to work for organisations that reflect their values and contribute to a better world. Research by Deloitte found that 69% of adult employees surveyed want their companies to invest in sustainability efforts, including reducing carbon emissions, using renewable energy, and reducing waste.

The Bottom Line

Do businesses need a sustainability strategy? In short: Yes. Not every company needs a detailed roadmap tomorrow—but all businesses should be thinking seriously about how they affect people and the planet. A sustainability strategy is no longer a luxury or a side project. It’s a risk management tool and a growth driver.

The world is changing, and businesses that want to survive—and thrive—in the long term can’t afford to ignore that.

Discover our sustainability strategy & policy consultancy services.