Q&A with CB Bhattacharya: Why sustainability is a matter of sheer survival

In this Q&A, we spoke to Professor CB Bhattacharya about the evolving role of sustainability, the impact of the current US political climate, and how to bridge the gap between external reporting and internal reality. CB is a Professor of Organisations & Entrepreneurship and Marketing and Business Economics in the University of Pittsburgh, and author of the book ‘Small actions big difference: Leveraging corporate sustainability to drive business and societal value’.

Many employees still feel that sustainability is "someone else's job." How can leaders encourage genuine individual ownership across the organisation?

CB: The most tangible way to drive ownership is through sustainability ambassadors, which can amount to roughly 20% of your workforce already passionate about these issues. These volunteers go into the ‘belly’ of the organisation to persuade peers through a ‘hybrid appeal’ of the head (saving money) and the heart (the future of our children).

Crucially, leaders must grant employees autonomy in their specific stations so they don't have to ask permission for every sustainable change. In a psychologically safe environment where such initiative is rewarded, many small actions add up to a big difference.

We often see a ‘reporting-to-reality gap’ where external disclosures are excellent, but internal awareness of sustainability issues is low. How can we bridge this

CB: High external excellence paired with low internal awareness is a red flag. It suggests the report is ‘hyped up’ and not backed by reality, which implies low involvement from the workforce.

To turn this around, I suggest co-creating the content with employees. Give them copies of the report and hold a discussion or critique. Ask them: "Are we going overboard? Should we do it differently?". If reports are too technical for regulatory reasons, it is incumbent on the company to translate that hard work into a two-page, ‘plain English’ version. Communication is the first step to awareness, and awareness is the first step to action.

In the current US climate of deregulation, some argue that ESG is a distraction from shareholder value. How should business leaders respond?

CB: That is myopic thinking. While it might work in the short run, it won't work in the long run. This perspective comes from those who believe the only purpose of business is to maximise profits.

I belong to an alternative group that believes the purpose of business is to maximise stakeholder value; only by doing that well can we make money for shareholders. If you define a clear raison d'être for your company, profitability becomes a function of your sustainability performance. For savvy companies that realise sustainability is an existential threat, profitability and ESG go hand in hand.

Have you observed a change in the appetite for sustainability among US companies?

CB: It depends on the company. There is a group that never believed in sustainability and only did it as a box-checking exercise; those companies are moving away and returning to extraction or drilling.

However, the group of companies that believe climate change is an existential threat are working hard and fast to protect their future. This has nothing to do with being a ‘good citizen’—it is sheer survival. Anyone with their pulse on the next 20 or 30 years is preparing for these bad eventualities.