打造可持续发展文化

In the final installment of this series about how to build a sustainable business, we want to reflect on the hard work and perseverance that goes into creating a meaningful and impactful sustainability program. A company that has put in the time and energy to craft a sustainability strategy, set goals, report on progress, and establish a charitable foundation — or even one that is just now in the initial steps of a sustainability journey — should feel proud. It is doing the right thing for business, people, and the world at large.

At the same time, the work of a purpose-driven organization is never done. This is a time to take stock and look to the future, identify the steps needed to ensure that the sustainability program continues to evolve, grow, and remain a top priority for the entire organization. In other words, an organization should ask, how do I build a culture that actionizes sustainability every day? 

A governance structure for shared accountability

To drive ongoing accountability and sustainability action, it is crucial to have a governance structure that encompasses multiple levels of responsibility. Everyone in an organization should know how to personally advance overall sustainability goals through specific, measurable actions. 

For example, the sustainability program at Flex including the climate-related governance structure starts at our Board of Directors and goes all the way down to the operations level. This means that the sustainability strategy set by leadership does not get lost in translation in our day-to-day operations. At the top, the Board of Directors oversees and provides policy guidance on strategic planning and risk management oversight, which is directly relevant to the sustainability program. To drive accountability at the Executive Leadership Team (ELT) level, executive compensation is tied directly to sustainability goals and results. 

Further down the organization, site-level sustainability matters are overseen by site sustainability teams, who are responsible for the development and administration of site-specific plans and report monthly to the global sustainability team to ensure that every Flex site worldwide is making progress and to flag any issues that need to be escalated. 

Within Flex, we have both the Executive Council, which includes our CEO and members of the ELT, and the Sustainability Leadership Committee. We meet quarterly with the Executive Council to share progress in key areas. The Sustainability Leadership Committee, which is a cross-functional group composed of leaders throughout the organization, meets regularly to share information and collaborate, which enables us to surface opportunities for a more holistic approach to our sustainability strategy and progress towards goals. 

Ongoing monitoring, tracking, and reporting

A key element of having the right governance structure in place is that it enables organizations to collect information and insights at different levels. We previously stressed the importance of monitoring, tracking, and reporting on sustainability data and goals. This remains a crucial practice to make sustainability tangible and actionable for everyone in the organization. 

It isn’t enough to rely on a single annual report to tell whether companies met or fell short of goals. The best practice is to have a cadence of continuous tracking and reporting, so that teams can quickly course correct as needed. At Flex, we release our annual sustainability report publicly, but in the background our global sustainability program office team meets regularly with area owners (sustainability leadership committee) and at least quarterly with our executive leadership to maintain momentum and visibility into our progress. 

When it comes to sustainability reporting, it is also important to have a high level of discipline and data integrity, which will ensure that data insights are trustworthy and actionable, preserving organizational reputation. This is especially critical as investors and governing bodies are scrutinizing companies’ sustainability claims more closely.  

Having a disciplined approach to data collection, validation, and reporting process will help organizations continue building trust with investors and other stakeholders, including the employee base. 

The importance of course correction

The other benefit of ongoing accountability check-ins is enabling organizations to course correct quickly when off-track. Having a high level of visibility into progress towards sustainability goals — and a culture that rewards transparency and problem-solving rather than covering up unfavorable metrics — will enable the greatest impact over time. 

We recommend setting up an ad hoc committee comprised of cross-functional team members to tackle goals that aren’t being met. Having a dedicated group responsible for finding a solution and ensuring that they have buy-in and support from leadership, is the fastest and most effective way to course correct lagging goals. 

Moving from passive to empowered employee engagement

Ultimately, you need to move from a passive approach to a proactive one to embed sustainability into the organization’s DNA— and to empower the broader employee base to always act with sustainability in mind. Consider companies that either lack a sustainability program or only engage with sustainability to meet regulations. Both these approaches are passive at best and will not inspire every team member to advance sustainability initiatives. 

Taking a proactive approach requires thinking about how the company can help to solve the world’s most urgent issues, and to continue finding creative ways to involve the broader organization. Can the supply chain function be challenged to prioritize sustainability requirements at the same level as quality and cost? Are human rights implications and fair labor practices when hiring a high volume of employees to meet heightened customer demand being considered?  

When employees are bought into this proactive approach, they are empowered to take their own part in advancing sustainability goals. At the individual level, any team member can make a difference through learning and development, volunteerism, and more. For example, at Flex, some of the individual labor practices targets that are tied to individual employee engagement include meeting an average of 40 hours of training and development annually per employee by 2025. Making alignment to sustainability goals a priority in every single business decision demonstrates to the broader organization that our values are at the core and creates a sense of shared purpose. As organizations continue their journey, they’ll find that building a culture that actionizes sustainability will surface new and rewarding ways to make a difference. If every member of the company feels empowered to make a difference, the positive impact is significant and lasting.