Divides & dividends 2023 -accountability-divide
Divides and Dividends 2023
The Accountability Divide
83
%
of senior leaders are confident about meeting sustainability targets in at least one area.
Yet only
35
%
report that they have clear sustainability objectives.
Organizations are rushing to make
visible commitments
to sustainability.
Yet they are often overlooking a critical step: ensuring their executive teams are incentivized to make change happen—and stick.
We call this...
The Accountability Divide.
Global evidence of the Accountability Divide
Organizations are missing multiple opportunities to hold executives accountable for sustainability action—whether that’s tying executive compensation to sustainability results, creating clear sustainability KPIs, or ensuring sustainability is part of their day jobs.

Sustainability is not part of leaders' objectives, appraisals, or day jobs

Which of the following statements apply to you?

(% of senior leaders selecting this option)

Global - Senior Leaders

We've become more sustainable and we'll keep making progress

59%

I have clear sustainability-related objectives

35%

My performance appraisal looks at my impact on sustainability

32%

Processes/protocols ensure I consider sustainability in the execution of my work

30%

My compensation is tied to my impact on sustainability

29%

My peers/team hold me accountable to sustainability objectives

27%

My sustainability objectives are measured by clear KPIs

23%

Sustainability is not part of leaders' objectives, appraisals, or day jobs

Which of the following statements apply to you?

(% of senior leaders selecting this option)

ANZ - Senior Leaders

We've become more sustainable and we'll keep making progress

65%

I have clear sustainability-related objectives

41%

My peers/team hold me accountable to sustainability objectives

39%

My performance appraisal looks at my impact on sustainability

37%

Processes/protocols ensure I consider sustainability in the execution of my work

35%

My compensation is tied to my impact on sustainability

33%

My sustainability objectives are measured by clear KPIs

28%

Sustainability is not part of leaders' objectives, appraisals, or day jobs

Which of the following statements apply to you?

(% of senior leaders selecting this option)

France - Senior Leaders

We've become more sustainable and we'll keep making progress

61%

I have clear sustainability-related objectives

45%

Processes/protocols ensure I consider sustainability in the execution of my work

44%

My performance appraisal looks at my impact on sustainability

44%

My compensation is tied to my impact on sustainability

41%

My peers/team hold me accountable to sustainability objectives

32%

My sustainability objectives are measured by clear KPIs

26%

Sustainability is not part of leaders' objectives, appraisals, or day jobs

Which of the following statements apply to you?

(% of senior leaders selecting this option)

Germany - Senior Leaders

We've become more sustainable and we'll keep making progress

64%

I have clear sustainability-related objectives

32%

My performance appraisal looks at my impact on sustainability

31%

My compensation is tied to my impact on sustainability

30%

Processes/protocols ensure I consider sustainability in the execution of my work

28%

My sustainability objectives are measured by clear KPIs

27%

My peers/team hold me accountable to sustainability objectives

26%

Sustainability is not part of leaders' objectives, appraisals, or day jobs

Which of the following statements apply to you?

(% of senior leaders selecting this option)

Spain - Senior Leaders

We've become more sustainable and we'll keep making progress

70%

Processes/protocols ensure I consider sustainability in the execution of my work

53%

I have clear sustainability-related objectives

44%

My compensation is tied to my impact on sustainability

38%

My performance appraisal looks at my impact on sustainability

38%

My sustainability objectives are measured by clear KPIs

36%

My peers/team hold me accountable to sustainability objectives

36%

Sustainability is not part of leaders' objectives, appraisals, or day jobs

Which of the following statements apply to you?

(% of senior leaders selecting this option)

Sweden - Senior Leaders

We've become more sustainable and we'll keep making progress

74%

Processes/protocols ensure I consider sustainability in the execution of my work

51%

My peers/team hold me accountable to sustainability objectives

38%

I have clear sustainability-related objectives

38%

My sustainability objectives are measured by clear KPIs

33%

My compensation is tied to my impact on sustainability

33%

My performance appraisal looks at my impact on sustainability

31%

Sustainability is not part of leaders' objectives, appraisals, or day jobs

Which of the following statements apply to you?

(% of senior leaders selecting this option)

UK - Senior Leaders

We've become more sustainable and we'll keep making progress

74%

Processes/protocols ensure I consider sustainability in the execution of my work

49%

I have clear sustainability-related objectives

49%

My performance appraisal looks at my impact on sustainability

43%

My compensation is tied to my impact on sustainability

42%

My peers/team hold me accountable to sustainability objectives

37%

My sustainability objectives are measured by clear KPIs

30%

Sustainability is not part of leaders' objectives, appraisals, or day jobs

Which of the following statements apply to you?

(% of senior leaders selecting this option)

US - Senior Leaders

We've become more sustainable and we'll keep making progress

58%

I have clear sustainability-related objectives

34%

My performance appraisal looks at my impact on sustainability

32%

Processes/protocols ensure I consider sustainability in the execution of my work

29%

My compensation is tied to my impact on sustainability

28%

My peers/team hold me accountable to sustainability objectives

26%

My sustainability objectives are measured by clear KPIs

23%

Source: RRA Divides & Dividends Survey 2023, N = 3,813 global senior leaders, not all countries and markets shown.

 

Why the Accountability Divide matters

 

The adage is true: What gets measured, gets managed. This is an important lesson to heed as you make the bold transition to a more sustainable future.

 

When everyone at your organization understands the role they play in making change happen—and are held accountable for progress—sustainability becomes truly integrated across strategy, decision-making, and resource allocation.

 

In fact, our research shows a clear link between executive accountability for sustainability and progress on sustainability goals.

 

 

Senior leaders who frequently discuss sustainability objectives with their team are 1.6x more likely to report that sustainability progress has been made and will continue to be made.

Senior leaders who feel personally accountable to sustainability objectives 1.6x more likely to report that sustainability progress has been made and will continue to be made.

Senior leaders whose impact on sustainability goals is part of their performance appraisal are 1.6x more likely to report that sustainability progress has been made and will continue to be made.

Senior leaders with clear sustainability objectives as a leader are 1.5x more likely to report that sustainability progress has been made and will continue to be made.

 

quote

Without systems to hold executives accountable, organizations’ sustainability actions are at risk of becoming token gestures, rather than catalysts of real change.

Sarah Galloway, Leadership Advisor, Russell Reynolds Associates

 

 

2023 Survey            2021 Research Report           Download full report

 

How world-leading organizations are holding executives accountable for sustainability

 

Sustainability front-runners are enforcing clear, measurable sustainability targets for their executive teams. They recognize that holding leaders responsible for sustainable actions cultivates a culture of accountability—and action.

 

Natura

Natura, widely considered as one of the most sustainable companies on the planet, ties executive compensation to sustainability goals. The leadership is continually challenging itself. And each year, Natura’s metrics for success get more sophisticated and demanding.

 

Natura’s CEO João Paulo Ferreira shared how one year the company’s financial targets were met but the sustainability goals were not, so no one got a bonus that year. “That’s how you embed a sustainability goal; that’s how they know it’s important.”

 

 


 

3M

Internally, 3M holds its individual business units accountable for innovating on better products for the consumer and the environment by introducing sustainability KPIs into its new product development and launch process. Beginning in 2019, 100% of the company’s new products (approximately 1,000 per year) are required to have a Sustainability Value Commitment that demonstrates how the product drives impact for the greater good. The company measures the impact of this commitment and publicly reports on it annually to ensure transparency.

 

 

Source: Sustainable Leadership, Russell Reynolds Associates, 2021

 

 

 

 

 

 

 

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Divides and Dividends | 2023 Report

Deliver stand-out sustainability success.

Discover other risks that may stop you from reaching your sustainability goals

 

It’s not enough to just commit to sustainability. To make a positive impact, you need to deeply integrate sustainability across your entire organization—from strategy and operations to daily decisions. Our research shows four gaps that, unless addressed, will prevent this from happening.

 

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Leaders are making the right noises around sustainability. Yet beneath the surface, they still see sustainability as a brand-building exercise, rather than a true lever for business performance.

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CEOs often lack the vision and courage that’s needed to take risks, navigate complex trade-offs—and ultimately pivot their organizations toward a more sustainable future.

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Senior leaders are missing multiple opportunities to harness the collective potential of employees to accelerate sustainability transformation, at scale.

 

Connect with our sustainability experts behind this research