Council for Sustainability Transformation Advocates Corporate Strategy Overhaul

In a significant move to address the evolving landscape of sustainability, the Council on Sustainability Transformation, convened by Environmental Resources Management (ERM), has released a new White Paper titled "Navigating Change: Delivering Sustainability Value in a Volatile World." This document aims to assist corporate leaders in re-evaluating their sustainability strategies amid geopolitical, economic, and societal turbulence. The launch of the White Paper took place on June 17, 2025, and emphasizes the necessity for businesses to adapt their approaches to sustainability in light of increasing challenges such as supply chain disruptions and climate change.

The White Paper outlines several key recommendations that focus on aligning sustainability initiatives with core business strategies. "Given the commercial and societal risks and opportunities that climate and nature create, companies should prioritize these aspects along with social issues that are most relevant to their organizations," said Sabine Hoefnagel, ERM’s Global Leader of Sustainability & Risk. Hoefnagel highlighted the importance of reframing sustainability from a mere ethical obligation to a business-critical component, emphasizing that success in today’s volatile market depends on addressing climate and nature risks while simultaneously enhancing commercial value.

The report further suggests that companies must identify overlaps between sustainability challenges and other strategic priorities, a move that could lead to enhanced resilience against external pressures. Hoefnagel noted, "It is crucial for senior business leaders to be pragmatic and steadfast, focusing on progress rather than perfection."

The document also addresses the increasingly prevalent trend of companies withdrawing from collective sustainability alliances, warning that such actions may leave individual businesses more vulnerable in the long term. The Council encourages stronger collaboration across value chains as a means to withstand uncertainties and promote innovation.

The Council on Sustainability Transformation comprises a diverse group of leaders, including Peter Agnefjäll, former CEO of IKEA Group; Mark Cutifani, former CEO of Anglo American; and Connie Hedegaard, former EU Commissioner for Climate Action. Their collective insights are expected to guide corporate executives and board members in overcoming obstacles to achieving ambitious sustainability targets while maintaining financial value.

In addition to this paper, the Council has previously published a document focusing on the importance of company-investor engagement as a driver for climate action. The ongoing efforts reflect a broader commitment to integrating sustainability into the core operations of businesses, ensuring that they remain viable and responsible in an increasingly complex global landscape.

This White Paper serves as a timely reminder of the critical intersection between sustainability and business strategy, urging corporate leaders to embrace the complexities of the current market rather than retreating from their sustainability commitments. As businesses navigate these challenges, the insights provided by the Council are expected to play a pivotal role in shaping future corporate sustainability strategies, driving both resilience and growth in the face of ongoing global uncertainties. The White Paper is available for download through ERM’s website.