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Businesses are under intense pressure from a range of stakeholders to meet globally agreed goals and rising
expectations on climate, nature and society and, in some cases, to achieve a stated corporate purpose which
aligns with delivering sustainable outcomes for society. This needs to be delivered in a way that maintains
business resilience and financial health, including to satisfy shareholders (some of whom may not support such
action) – a task that is made ever more challenging by near-term shocks such as COVID-19, rising inflation and
increasingly prevalent climate, nature and social emergencies.1 Further challenge arises from the operating
context; businesses act within an unsustainable system where markets and regulation do not always reward
sustainable business performance.
Developing and embedding a greater societal purpose is a practical approach to navigating these tensions, in
service of increased corporate sustainability. Today, purpose can be a significant indicator of a business’s
commitment to sustainability and a source of competitive advantage. Should markets and regulations begin to
reward sustainability, purpose-driven organisations will be well placed on both sustainability and strategic clarity.
To this end, the University of Cambridge Institute for Sustainability Leadership (CISL) has researched the
organisational enablers for sustainable business performance. With the support of the Business Transformation
Group, CISL has developed a Business Transformation Framework (BTF), which identifies some indicators of a
business’s progress towards purpose, in service of sustainability. (...)».
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