conducted by my firm, L.E.K. Consulting, suggests many of these organizations are struggling to deliver on their commitments. To map the extent and nature of this new level of sustainability challenge, L.E.K. Consulting surveyed 400 global C-suite and senior executives of companies in a range of industries and at a variety of scales, including 28% with annual revenue over $10 billion.
With all that at stake, it seems odd at first glance that organizations aren’t reporting better and faster progress. But they are not, and the reasons quickly become evident. The problem is lack of alignment — with external stakeholders and within the leadership team. Boards and executives are aware of these risks, but often lack metrics or KPIs to track progress. Only a quarter of companies have any enterprise wide ESG KPIs in place, and fewer still have a full set in place .
When asked “What is the key area where your organization is least prepared to deliver your ESG goals?” 43% cited reward and incentive frameworks, and 40% cited “the right culture, including tone and engagement from the top.”79% of executives said the organization has more to do to put the required skills and capabilities in place.
One company that has lived up to their sustainability targets is Burberry:
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