Strategic sustainability drivers
A framework for adaptive sustainability strategies
Sustainability is not a one-size-fits-all imperative. While 83% of companies globally increased their sustainability investments last year, the reasons they pursue it, and the intensity with which they invest, vary dramatically based on their ownership structure, maturity stage, and business model.
This article decodes the three-variable framework that determines why companies pursue sustainability:
- Ownership Structure (Listed | Privately-held | Family-owned)
- Company Maturity (Startup | Growth | Mature)
- Business Model (B2C | B2B | B2G)
By understanding your company’s profile across these three dimensions, you can move beyond generic sustainability advice to make targeted, high-impact investment decisions. This framework helps C-level executives and sustainability officers answer the critical question: “Why should WE invest in this, given our specific context?”
The Problem: Why Generic Sustainability Messaging Fails
The sustainability discourse has become increasingly prescriptive. Industry associations, consultants, and regulators publish lengthy frameworks outlining what companies should do: reduce carbon emissions, improve diversity, strengthen governance, enhance supply chain transparency, and so on. All pertinent and important topics that society must mitigate and adapt.
Yet this advice often misses the mark.
A startup with $5 million in revenue cannot implement the same sustainability infrastructure as a $50 billion multinational. A family business with a 50-year horizon has different priorities than a private equity-backed company preparing for exit. A B2C consumer brand faces customer pressure that a B2B industrial supplier does not.
Evidence of Differentiation
While there is a consensus that many companies are increasing their sustainability investments, the highest priority for making effort differs across companies.
Deloitte Global's research, surveying over 2,100 C-suite executives, indicates that most are approaching sustainability by either transforming their business model or embedding it throughout their organisation1. Eighty-three percent of respondents increased their sustainability investments in the last year. This commitment is driven by the recognition that sustainability makes sound business sense, rather than being pursued merely for its own sake. However, what constitutes "business sense" varies significantly from one company to another.
Looking ahead in Switzerland, 70% of Swiss executives expect climate change to significantly impact their company’s strategy and operations over the next three years, a higher proportion than the global average of 60%2. This heightened executive concern is well-justified, given Switzerland's greater vulnerability to severe climate impacts compared to the global average3. Globally, when assessing the impact of sustainability efforts on their business, executives primarily identify revenue generation, followed by compliance, brand and reputation, cost reduction, and risk and resilience (see Figure 1). However, the perceived positive impact in Switzerland is lower than the global average, suggesting unique market dynamics are at play.
There is a geographic variation reflecting different regulatory environments, stakeholder pressures, and business model exposures. A Swiss or European company faces Swiss Ordinance on Climate Disclosures (CH-OCD) or Corporate Sustainability Reporting Directive (CSRD) compliance deadlines, while an Asian company may prioritise climate resilience due to physical climate risks.
Similarly, earlier-stage companies may face internal barriers, such as a lack of ESG strategy, skills gaps, and measurement challenges. In contrast, mature companies may cite external barriers like government policy gaps or geo-eco-political uncertainty. These are not the same problem: early-stage companies need foundational capability building, whereas mature companies need policy clarity and external support.
The Framework: Ownership × Maturity × Business Model
Sustainability drivers are determined by the intersection of three variables (Figure 2). Understanding your position across these dimensions reveals your true sustainability imperative.
Framework in action: What Is Your Sustainability Imperative?
To illustrate the diverse paths companies take in addressing sustainability, we present two distinct case studies (Figure 3). Despite facing similar industry challenges, a privately-owned manufacturing company and a family-owned med tech company demonstrate fundamentally different strategic actions. Their unique profiles, shaped by ownership structure, organisational maturity, and business model, directly influence their strategic imperatives, actions, and investment priorities, underscoring the critical need for tailored sustainability strategies rather than a one-size-fits-all approach.
Conclusion: Tailored Strategy Drives Results
The sustainability imperative is not universal. It is determined by the intersection of ownership structure, company maturity, and business model.
A listed pharmaceutical company must prioritise regulatory compliance and supply chain transparency. A family-owned manufacturer can invest in long-term operational transformation aligned with family values. A growth-stage B2B company must focus on RfP readiness and competitive differentiation. A B2C consumer brand must invest in authentic sustainability practices that build customer loyalty.
Dr. Quinn Wenning
