Unshaken Strategy: How to Manage Sustainability Through Volatility

With political and market instability around the world, many are questioning Sustainability and what it means. This constant flux requires ongoing re-evaluation—despite current circumstances.

Emotional reactions to programs don’t work. You must rely on your processes to guide you through.

Enter Plan-Do-Check-Act (PDCA) framework, a powerful change management tool that offers a structured, repeatable approach for navigating uncertainty, which one of our energy clients confirms is an “…excellent framework and is helping keep things on track and avoid distraction.”

How to manage Sustainability in a volatile market?

Based on experience, continual supply chain research and ISO 26000 Guidance on Social Responsibility, Sustainability is still made up of four core components:

Defining organization-specific Sustainability takes place when each of these components are broken down into Metrics and Indicators identified to describe performance as outlined below.

No matter what is going on in the world—political shifts, economic downturns, regulatory changes—Sustainability issues don’t pause or stay static.

Issues such as occupational health & safety, water and energy usage, and community or employee concerns still contribute to your bottom line and must be prioritized and managed.

From a change perspective, according to Sustainability Magazine, some of the world’s leading automotive manufacturers, including Ford, GM and Volvo, have scaled back electric vehicle expansion plans, citing fluctuating demand and economic constraints, and financial institutions, including five of Canada’s largest banks and six major US banks, have exited the Net Zero Banking Alliance.  The latter is in line with Sustainalytics reports that in 2024, many high-emitting companies across the European Union delayed deadlines for achieving carbon reduction targets through 2030; further many US companies have rolled back their diversity, equity, and inclusion (DEI) initiatives with no significant changes to overall Morningstar Sustainalytics’ Environmental, Social and Governance (ESG) Risk Rating due to the its relatively low DEI weight and a growing number of investors are exploring nature-finance opportunities (think regenerative agriculture, ocean conservation, circular economy) to accelerate the transition to a nature-positive future and address biodiversity.

So how can you ensure you’re keeping pace? Advancing Sustainability strategy while navigating an increasingly fragmented world where the rules of engagement are changing is a megatrend observed by S&P Global.

PDCA described below and available to some level in every organization, is THE Sustainability strategy that will succeed in this evolving landscape.

Step 1. Assess Stakeholder Priorities and Benchmark

Stakeholders are organizations or individuals whose interests may affect or be affected by your decisions or activities.

These may include:

• Employees
• Customers
• Governments
• Industry Groups
• Shareholders
• Suppliers (DYK, according to S&P Global, Supplier screening is uncommon even for industry groups that view supply chain management as material?

…and their priorities are continually changing.

Ask yourself:

• • Are you keeping pace?
  • Are you proactively engaged in conversation with them to contribute to their priorities?

Remember, communication is a two-way street—and it should not be reactive.
You need a process for regular re-evaluation.

Contact us for a FREE Stakeholder and Materiality Assessment Prioritisation Tool.

Also, benchmark both internally and externally.

Find out what key groups are doing:

• • Internally: Facilities, departments, or divisions
  • Externally: Competitors, industry groups, municipalities, recognized Sustainability leaders

For example:

• • Industry Groups are incorporating Sustainability as part of membership (e.g., Responsible Distribution Canada (RDC) is currently developing a Sustainable Distribution Code of Practice, Grape Growers of Ontario (GGO) and Ontario Craft Wineries (OCW) Sustainable Winegrowing Ontario Certification).

• • Municipalities are leveraging DWQMS (check out how Sustainability was incorporated into OCWA’s Water Quality and Environmental Management Policy) and, in some cases, ISO, to address Sustainability issues such as energy and chemical use.

Our FREE Stakeholder and Materiality Assessment Prioritisation Tool includes what to consider as part of your Sustainability benchmarking.

Step 2. Prioritise Risk and Define Material Metrics

Stakeholder engagement and benchmarking Sustainability performance is a precursor to Sustainability risk management, which requires assessment and prioritization.

This ensures your efforts are focused on areas that will deliver the most value and respond to the most relevant concerns.

Sustainability issues deemed material should be managed by your organization.

Consider the following:

• • Compliance is a must—and PDCA provides a due diligence defense.
  • Best practices bring value in time and money and can be a way to bridge regulatory uncertainty.
  • Is the issue critical to achieving your business objectives?
  • Do you have the resources available to implement solutions?
  • What is the timeline to reach desired results?
  • Are there reputation or cost implications if not addressed?

Contact us for a FREE Stakeholder and Materiality Assessment Prioritisation Tool to help prioritize risk and define metrics.

Keep reviewing your Risks

Risks should be reviewed at least annually—but ideally as issues arise—to ensure all significant risks have been identified, managed and measured.

Your Sustainability PDCA is a change management tool that should be continually used to:

• Set baselines (Step 3)

• Monitor performance (Step 8) (e.g., Occupational Health & Safety → Lost Time Indicators

• Report to Leadership (Step 10) and Stakeholders (Step 12). Consistent with our Sustainability Trends blog, S&P Global reports jurisdictions around the world will continue to push for comparable Sustainability reporting.

Don’t skip the in-between steps. They’re critical for long-term success and organizational buy-in—especially in volatile times.

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