What: A new strategic approach to corporate sustainability advocates using business value, stakeholder influence, science, and purpose to identify and prioritise ESG initiatives that truly matter.

Why it is important: With research showing that one-third of shoppers prioritise eco-friendliness and successful retailers achieving significant benefits through focused sustainability initiatives, this strategic approach helps companies navigate the complex landscape of ESG priorities.

Harvard Business Review's framework for corporate sustainability strategy addresses the critical challenge of companies spreading their efforts too thin across multiple ESG initiatives. The approach introduces four essential lenses: business value, stakeholder influence, science and technology, and purpose, designed to help companies identify truly material issues deserving strategic focus. This methodology balances external pressures with internal capabilities, emphasising the importance of data-driven decision-making while acknowledging stakeholder perceptions. The framework suggests that companies should invest most significantly in issues that appear at the intersection of all four lenses, ensuring both meaningful impact and efficient resource allocation. Using Keurig Dr Pepper as a case study, the article demonstrates how this focused approach can lead to innovative solutions and strategic clarity, ultimately helping companies move beyond scattered sustainability efforts to create lasting environmental and business value.

IADS Notes: Recent retail industry developments validate the importance of focused sustainability strategies. The EU's 2025 revised sustainability directives are compelling retailers to be more selective in their ESG initiatives, while Bain & Company's research reveals 60% of consumers showing increased concern about climate change. IKEA's successful transformation strategy demonstrates how focused sustainability initiatives can balance environmental responsibility with commercial viability. This strategic approach becomes increasingly critical as research shows nearly one-third of shoppers prioritising eco-friendliness, highlighting how companies that effectively narrow their sustainability focus can better meet evolving consumer demands while maintaining operational efficiency.

Getting strategic about sustainability