In today’s business world, sustainability is an imperative. Not only because of the mounting ESG regulations and growing pressure from investors. But especially due to consumer demand. Consumers that also happen to be today’s and future workforce. To let the facts speak for themselves:

• A McKinsey study shows a “clear and material link” between sustainability claims and consumer spending, signalling a shift in purchasing behaviour towards products with ESG-related claims.
• The Pew Research Center reports that Millennials and Gen Z increasingly demand action on climate change, with “37% of Gen Zers and 33% of Millennials say addressing global climate change is a top concern to them personally.”
• According to a study by Deloitte, 69% of employed adults surveyed “said they want their companies to invest in sustainability efforts.”

It is fair to say that there is a powerful connection between climate-conscious business conduct and future profitability. Companies regardless of their size are well advised to deeply embed sustainable practices into their strategies to future-proof their businesses. Often easier said than done. But especially startups benefit from two decisive factors in this regard: Firstly, they are only at the very beginning of their trajectory, allowing them to closely integrate sustainable practices into their DNA right from the start. Secondly, flat hierarchies ensure that management and team are closer and that there are shorter decision-making processes.

So for all green champions who want to get their leadership team onboard to take bold action for sustainability, here are three key levers to kick-start the journey:

Spark the conversation and educate your leadership

Startups operate at an enormous speed, leaving little time for deep dives into sustainability issues. Founders and executives often do not have the time or simply underestimate the benefits of taking climate action. Therefore, it does not come as a surprise that employee championship is the most important driver for business leaders to increase their sustainability efforts. So starting such conversations is an essential first step to breed change and create ripple effects within the organisation.

However, it is crucial to be prepared when igniting internal discussions. Green champions should substantiate their stance by sharing data on how climate-related risks, such as flooding, extreme weather events, or resource scarcity, can affect the company’s operations and future growth. Present projections on how adapting now will secure the startup’s long-term resilience and profitability. For instance, startups that produce physical goods might explore how sustainable practices can de-risk supply chains and ensure scalability. For financial executives, it is critical to understand how sustainable practices will not only allow for compliance but improve operational efficiency and create business value. To be successful in kicking off your company’s sustainability journey, it is crucial to point out the return on investment, spanning from improved investor relations and operational efficiencies, de-risked supply chains, and enhanced brand image to increased talent acquisition, just to name a few.

Build strategic alliances and leverage success stories

Startups often have smaller teams and limited resources, but they also have the advantage of close-knit networks. Identify investors, advisors, or key clients who are passionate about sustainability and can influence decision-making. Aligning with these stakeholders provides external support and gives valuable insights or resources to help advance sustainability initiatives. Highlight how being a sustainability leader in your space can differentiate your startup from competitors.

Speaking of which, do not shy away from using success stories from within the industry to illustrate the benefits of sustainability initiatives. By presenting case studies where sustainable practices have had positive implications on corporate reputation, operational efficiencies, or even financial performance, you can make a compelling case for why your leadership should prioritise these efforts. Highlighting examples where competitors have successfully integrated sustainability into their business models can also spur a sense of urgency and competitive spirit in the leadership team.

Formalise commitments

Once your leadership team is onboard, help them translate good intentions into actionable steps. Work towards formalising the commitments by creating study policies as well as a feasible action plan that includes milestones, KPIs, responsibilities, budgets, and deadlines. This might mean implementing carbon management software to track emissions and reduce them by a certain percentage by a specific year, committing to science-based targets, or publicly disclosing progress through annual reports. Setting clear goals ensures accountability and positions your startup as a credible player in the sustainability space.

Engaging your leadership team in the sustainability journey isn’t just about compliance. It’s about securing the long-term viability of your business and standing out in a competitive market. By driving conversations, educating your team, forming strategic alliances, showcasing the benefits, and formalising your commitments you can build momentum for meaningful change. In the startup world, innovation and sustainability go hand in hand – and by embedding sustainability into your company strategy, you’re not just building a business but shaping a greener future.