Ten Key Factors for Sustainability Stakeholder Engagement

Stakeholder identification and engagement are critical for sustainability projects. Stakeholder groups, each with unique knowledge and perspectives, can elevate a project's vision and outcomes. They form the web of relationships and innovation routes surrounding your organisation or company.

Effective engagement fosters enduring relationships, aligns goals, and produces project ambassadors, enhancing overall success.

The initial steps involve identifying stakeholders and strategizing engagement, a process guided by the ten factors detailed in this article.

The article presents summarised version of the insights in enteleco’s free Sustainability Stakeholder Engagement report. You can download the full report here.

#1 Identifying key sustainability stakeholders

Stakeholder importance in sustainability initiatives varies with industry, company, and specific goals. Customers are often key externally and top management's support is critical internally.

Stakeholder engagement should be tailored to match each stakeholder group’s specific values and concerns.

#2 Having a holistic view on stakeholders

In sustainability initiatives, all business-connected groups are stakeholders, requiring active involvement for effective execution. Each group needs to feel a sense of ownership.

"Invisible" stakeholder groups, often overlooked, can significantly impact sustainability efforts, either as contributors or potential roadblocks.

#3 Addressing and incentivising stakeholders

Stakeholder engagement requires clear goals, utilizing ‘stakeholders’ language,' and considering specific group's values.

The sales department is a good internal example of the need to tailor sustainability initiatives and communication. This group is likely to react especially well to messages that resonate with their interests, such as long-term growth.

#4 Investors’ approach to sustainability

Investors are prioritizing sustainability performance, utilizing sustainability metrics to gauge company performance. The fact increases the importance of sustainability stakeholder engagement.

Confusion persists about sustainability-focused investment vehicles. Despite lagging, Japan sees increased sustainability investment interest and focus.

#5 The Framing of Sustainability

Sustainability needs reframing from a compliance task to an exciting, core business element linked to profit creation and risk management.

The framing should not negate that well-structured sustainability initiatives also help mitigate risks like supply chain issues or greenwashing accusations.

#6 Addressing the words-to-action gap

Stakeholder ownership and action, even if imposed, are critical to turn words into action and avoid greenwashing.

Invisible stakeholders, like office managers, can significantly contribute to actions, and clear KPIs can assist. However, the human factor is key for achieving your goals.

#7 The role of sustainability drivers

Sustainability coordination needs to be anchored within your organisation for effective data collection and result tracking.

Inter-departmental teams ensure representation and ownership, enabling two-way communication. The sustainability team should prioritize and assign ownership to specific initiatives, engaging stakeholders empathetically.

#8 Finding sustainability-focused talent

A scarcity of sustainability professionals exists. On-the-job training might help organisations fill this gap.

Addressing the 'S' (Social) in ESG, such as gender equality, is a particular challenge in Japan. On reason is that ‘the human element’ can be difficult to measure.

#9 Embedding sustainability knowledge, mindset, and behaviours

Embedding sustainability knowledge requires differentiating technical insights from values and feelings.

Activating values and shifting mindsets may outweigh technical knowledge where positive, long-term change is concerned. Collaboration beyond traditional channels can improve sustainability outcomes.

#10 Tracking sustainability developments

The people component in sustainability is rising in importance for talent attraction and retention. HR transparency is vital for stakeholder evaluation.

Governments aim for measurable elevation of human capital. Increasing disclosure levels and addressing low ESG ratings will continue to gain importance.