Best Practices for Corporate Sustainability Teams

Summary

This Conference Board/ESGAUGE report, based on a survey of 70 corporate sustainability and ESG leaders, examines how companies organise sustainability teams, how those teams integrate with core functions, and what talent and governance gaps remain. The research shows a clear preference for a hybrid model (a small central team with distributed liaisons), growing plans for structural tweaks to strengthen integration, and an emphasis on embedding sustainability into finance, procurement, risk and operations rather than treating it as a standalone activity.

Key findings include the prevalence of lean central teams (often 1–5 FTEs), planned structural adjustments by half of surveyed firms, notable talent gaps in financial modelling, change management and data analysis, and the central role of cross-functional steering committees and KPI alignment in driving progress.

Key Points

Most firms favour a hybrid structure: a lean central sustainability team that provides strategy and governance, plus distributed liaisons to embed action locally.
50% of respondents plan structural adjustments within two years—mostly to improve coordination and integration, not wholesale reorganisation.
Sustainability integration is growing but still partial: finance, procurement, risk and operations are the top areas targeted for deeper alignment.
Cross-functional steering committees and tying sustainability goals to financial/operational KPIs are the most effective governance levers cited.
Main talent shortages are in financial modelling, change management and data analysis—skills needed as sustainability moves into core decision-making.
Budget constraints matter: 40% of firms do not plan to add sustainability roles in the next two years, pushing the case for upskilling existing staff and clearer prioritisation.
Longer-term success depends on executive sponsorship, deliberate change management and embedding sustainability into existing business rhythms (strategy, risk registers, capital allocation).

Context and Relevance

As regulatory demands and investor scrutiny increase in 2025, how organisations structure sustainability work determines whether ESG becomes a driver of resilience and value or remains a peripheral compliance activity. The report is timely for leaders facing tighter disclosure rules and greater expectations around scope 3 emissions, assurance-ready reporting and integration of ESG into financial decision-making. The findings map practical steps—governance, capability-building and cross-functional alignment—that companies can take while operating with lean teams and constrained budgets.

Author style

Punchy: this is practical, evidence-based advice for sustainability leaders and executives. Read the detail if you are responsible for strategy, risk, finance or operations — it explains how to make sustainability part of everyday business decisions rather than an add-on.

Why should I read this?

Quick and useful: if you work on ESG or in a function that will be asked to deliver on sustainability targets, this report is basically your shortcut. It tells you what structures actually work, where the real capability gaps are, and which levers (steering committees, KPIs, finance integration) move the needle. Saves you time and helps you prioritise what to fix first.