Dec. 13, 2007 Wondering what keeps some companies from integrating sustainability despite a raft of green programs and practices? Look to the corner office, says a new report. Avastone Consulting's study of ten global corporations tracks five stages or steps toward sustainability success and blames a lack of "high-capacity" leadership for the fact that few of the companies get past step three.

The study is based on SustainAbility's Corporate Responsibility Gearbox, which identifies five "gears" on a company's path toward sustainability:

• 1.0 Comply Gear. Corporate sustainability efforts focus on compliance and philanthropy.


• 2.0 Volunteer Gear. Companies implement impact-reduction and eco-efficiency programs.


• 3.0 Partner Gear. Companies begin to manage risk more proactively while building their brand and reputations.


• 4.0 Integrate Gear. Sustainability becomes strategic, and companies embed sustainability within the business and across the value chain.


• 5.0 Redesign Gear. Companies contribute to large-scale systems changes that recast markets, redesign financial systems, and root out drivers of non-sustainability.

The Avastone study reveals that while all ten companies interviewed are in the process of moving to higher stages of sustainability, none have reached the fourth stage (Integrate). In addition, six do not view as business-relevant the highest fifth stage (Redesign), where expanded mindsets are critical on the path to sustainability, according to the report.

The report demonstrates "an intricate relationship between leader mindset and achievement of complex sustainability outcomes," according to Cynthia McEwen, co-author of the report. "The 21st-century global landscape calls for leaders with mindsets that view all five gears of sustainability as relevant to the business, not simply the gears that are obviously required to move the business forward."

This report finds that while environmental management programs are necessary, they cannot be the sole drivers of sustainability success. Subjective aspects like culture, shared values, and guiding principles are just as important.

"While leading companies have become sophisticated in their approach to sustainability and committed to making progress, few focus on the influence of patterns of the mind and how these shape our understanding of the world," says Avastone CEO John Schmidt. "Certain mindsets allow organizations to navigate the complexity of sustainability and proactively work with other key players toward sustainability at the scale needed."

The final sections of the report identify the mindset factors critical to companies' sustainability success and offers practical strategies for bridging the gap to that elusive step five.

Download the free report here.