A sobering reality
In an age of accelerating climate action and tightening ESG regulations, corporate sustainability teams find themselves at the front line of change. They are expected to drive ambitious decarbonisation plans, ensure compliance with new reporting standards and embed environmental and social considerations across sprawling supply chains, all while demonstrating business value. Yet behind these lofty expectations lies a sobering reality: sustainability functions are chronically under‑resourced and over‑burdened, and this gap threatens progress.
Two recent surveys by Leafr lay bare the scale of the challenge. An anonymous study of more than 400 UK sustainability leaders revealed that 75% of respondents said their teams are severely or very under‑resourced, with nearly 60 % identifying budget constraints as the primary obstacle to meeting their company’s sustainability goals. Despite almost 80% of leaders believing their organisation began sustainability initiatives out of genuine commitment to climate action, only 29% said sustainability objectives are aligned with business priorities. Compounding matters, the same proportion (75%) doubt their organisation will achieve net‑zero targets.
Leafr’s True State of Sustainability 2025 report, which surveyed more than 450 sustainability professionals across the UK and Europe, paints an even starker picture. It found that only 11% of respondents believe their organisation is on track to meet ESG targets. More than three‑quarters (76%) said their teams are not adequately resourced. 71% reported that their remit has expanded over the past year, yet 67% said their team size has stayed the same or shrunk. Budget constraints were again the top barrier, cited by 62% of participants, while 42% pointed to a lack of C‑suite engagement. Many professionals are being pushed beyond their expertise: 91% said they had been asked to work outside their formal remit.
These findings are mirrored by Green Retail World’s state‑of‑sustainability survey, which noted that 75% of corporate sustainability leaders feel under‑resourced and only 11% of respondents believe their sustainability initiatives are fully aligned with business objectives. Put simply, the people entrusted with delivering decarbonisation and social impact goals are running on fumes. This article explores why that matters, what factors contribute to under‑resourcing, and how organisations can course‑correct, turning sustainability from a compliance burden into a catalyst for innovation and growth.
1. Rising expectations, shrinking resources
Regulatory pressure and data overload
The demands placed on sustainability teams have exploded in recent years. New regulatory frameworks such as the EU’s Corporate Sustainability Reporting Directive (CSRD) and the UK Green Claims Code require more granular disclosures and demonstrable proof of impact. Leafr’s report notes that these tightening ESG disclosure requirements are a significant driver of stress. Under CSRD, companies must report not only their financial risks from climate change but also their impacts on people and planet – a “double materiality” approach that dramatically increases data collection and verification obligations.
Yet the tools and processes supporting this work often lag behind. As I observed in a recent Ikano Insight article, many organisations still rely on standalone systems and spreadsheets, leaving sustainability teams “wasting more time searching for spreadsheets than getting on with things”. Data sources are scattered across departments, manual processes dominate, and visibility into key indicators is limited. Without robust data management, compliance becomes a slog and opportunities for proactive decision‑making are missed.
The compliance trap
A study by IBM’s Institute for Business Value underscores this misallocation of effort. Its survey of 5,000 C‑suite executives across 22 industries found that spending on sustainability reporting exceeds spending on sustainability innovation by 43%. Many organisations approach sustainability primarily as an accounting exercise rather than as a source of competitive advantage. When teams are under‑funded and over‑burdened with compliance, the focus shifts from transformative projects to box‑ticking exercises.
This imbalance is evident in the surveys: while 71% of professionals report expanding remits, only a small minority see real progress in integrating sustainability into strategy. The IBM research suggests that embedding sustainability throughout the business leads to markedly better outcomes – organisations that do so are 52% more likely to outperform peers on profitability and achieve a 16% higher rate of revenue growth. However, only 31% of companies surveyed by IBM report incorporating sustainability data and insights into operational improvements to a great extent, and a mere 14% apply these insights to innovation. The gap between ambition and action remains wide.
Mis-alignment with core business
Many sustainability professionals feel they lack a seat at the table when commercial decisions are made. In the UK survey, only 29% of leaders said sustainability objectives are aligned with business priorities. Green Retail World’s analysis found a similar disconnect: 11% believe their initiatives are fully aligned with business objectives. Without clear links to the company’s core strategy, sustainability goals are easy to deprioritise when budgets are tight.
Moreover, leadership engagement is limited. Over 40% of professionals in the True State of Sustainability report pointed to a lack of C‑suite involvement. When sustainability remains siloed, it becomes more difficult to secure resources or integrate ESG considerations into product development, supply‑chain management or investor relations. Professionals feel isolated and unsupported – a sentiment echoed by the fact that nearly 50% of surveyed leaders cite sustainable supply‑chain management as a major skills gap, and more than 40% cite biodiversity knowledge.
2. Consequences of under-resourcing
Compromised target delivery
Under‑resourcing directly undermines the ability to meet climate goals. When three‑quarters of sustainability leaders doubt their organisation will achieve net‑zero commitments, companies risk falling behind regulatory mandates and investor expectations. The gap between ambition and capability also erodes trust among stakeholders, who increasingly demand transparency and progress.
Internationally, the challenge is clear. Accenture’s 2024 “Destination Net Zero” analysis shows that only 16% of the world’s largest companies are on track to reach net‑zero emissions by 2050, while almost half have increased their emissions since the Paris Agreement. This context underscores why supporting sustainability teams with adequate resources is critical – without it, commitments remain hollow and emissions continue to rise.
Burnout and talent risk
Working in a high‑pressure environment with insufficient resources can lead to burnout. When 91% of professionals are asked to work beyond their formal areas of expertise and team sizes are stagnant or shrinking despite expanding responsibilities, the risk of turnover increases. Losing experienced sustainability staff not only disrupts progress but also undermines institutional knowledge, making it harder to build momentum.
Innovation takes a back seat
The focus on compliance can crowd out opportunities for innovation. The IBM report notes that organisations with embedded sustainability enjoy a 16% higher rate of revenue growth and are 56% more likely to outperform peers on talent attraction. However, with limited budgets and over‑burdened staff, many companies channel their sustainability efforts into meeting the minimum reporting requirements rather than exploring new products, services or business models that could create additional value. For example, only 14% of executives say they are integrating sustainability data into innovation initiatives. This misallocation leaves companies vulnerable to competitors who view sustainability as an opportunity rather than a cost.
3. Addressing the resource gap
Tackling under‑resourcing requires more than incremental changes. Below are key strategies organisations can adopt to empower sustainability teams and unlock value.
3.1 Embed sustainability in governance, strategy and decision‑making
Embedding sustainability means moving beyond a dedicated department to make ESG considerations part of the company’s DNA. Companies with board‑level sustainability representation have better access to resources and internal knowledge. This also signals to investors and employees that sustainability is taken seriously. To achieve this:
- Align objectives: Ensure sustainability targets and KPIs are integrated into corporate strategy and linked to financial performance. When senior leaders hold joint accountability for sustainability and profit, resource allocation becomes less discretionary.
- Establish clear roles: Define responsibilities for sustainability across departments, from procurement and product development to finance and HR. This helps share the workload and prevent burnout.
- Use data‑driven decision‑making: Leverage ESG metrics in investment decisions, supply‑chain management and risk assessments. IBM’s research shows that 31% of organisations incorporate sustainability data into operational improvements to a significant extent, while the rest are missing opportunities.
3.2 Allocate budget and build capacity
Ambitious targets must be matched with realistic budgets and headcounts. The surveys indicate that budget constraints remain the top barrier to progress. Organisations should:
- Increase headcount: Growing the size of sustainability teams ensures workloads are manageable and expertise is sufficient across ESG domains (carbon accounting, social impact, biodiversity, etc.).
- Invest in training: Skills gaps, particularly in sustainable supply‑chain management and biodiversity, can be addressed through training programmes, industry partnerships and recruitment of specialists. Cross‑training employees in finance, data analytics and sustainability can break down silos and build mutual understanding.
- Reallocate funds from compliance to innovation: The IBM report notes that embedding sustainability leads to higher revenue growth and profitability. By reducing manual reporting burdens through technology, companies can direct more resources towards developing green products and services, unlocking new revenue streams.
3.3 Harness data and automation
As I have highlighted previously elsewhere, poor data management wastes precious time. To support overstretched teams:
- Centralise ESG data: Consolidate emissions, diversity, supply‑chain and governance data into a single system to improve accuracy and visibility.
- Use AI and automation: AI can automate tasks like data validation, trend analysis and report drafting. AI‑driven tools can detect anomalies, normalise formats and flag inconsistencies across reports. Automated workflows free up time for strategic thinking and reduce errors.
- Enable real‑time monitoring: IoT sensors and data platforms can provide up‑to‑date carbon footprint, energy usage and social impact metrics, allowing teams to react quickly and demonstrate progress.
3.4 Foster collaboration and partnerships
Sustainability cannot be achieved by a single team. Collaboration across departments and with external stakeholders is essential:
- Internal collaboration: Set up cross‑functional working groups involving finance, procurement, marketing and operations to integrate ESG into decision‑making. Encourage departments to co‑own sustainability goals and provide resources.
- Industry alliances: Join industry coalitions or standard‑setting bodies to stay abreast of regulatory changes and share best practices. This can also amplify voices calling for supportive policies and financial incentives.
- Consultants and technology partners: Engage external experts to fill knowledge gaps, particularly in areas like life‑cycle assessment, biodiversity and data management. This reduces pressure on internal teams and accelerates learning.
3.5 Prioritise leadership engagement and cultural change
The surveys show that 42% of professionals perceive a lack of C‑suite engagement. Leadership must champion sustainability and model the behaviours they expect:
- Communicate the business case: Use evidence from studies like IBM’s to show that sustainability drives profitability and revenue growth. Highlight that embedding sustainability yields tangible benefits: 56% higher likelihood of attracting talent and 75% higher likelihood of reporting revenue improvement.
- Reward progress: Incorporate sustainability metrics into performance reviews and executive incentives. Recognise teams that deliver both ESG and financial outcomes.
- Promote transparency: Regularly report on sustainability goals, progress and setbacks to build trust and accountability. Encourage honest dialogue about challenges and resource needs.
4. The role of technology in easing the burden
Technology alone will not solve under‑resourcing, but it can play a powerful supporting role. As I have outlined before, standalone systems and manual processes are a major drain on time. AI‑powered tools, such as Unravel Carbon from Ikano Insight, offer a glimpse of how automation can streamline ESG work. By bringing together disparate data sources, monitoring performance against multiple ESG indicators and generating dashboards or compliance‑ready reports, such tools reduce the administrative load on teams.
Automation also reduces errors and ensures consistency across geographies and business units. However, technology is not a silver bullet. I must be clear, AI cannot guarantee compliance or replace human judgement. Quality data inputs and expert interpretation remain vital. The optimal approach is a human‑in‑the‑loop model, where AI handles routine tasks and highlights anomalies, while humans contextualise the data and make decisions.
5. Turning sustainability into a value driver
The under‑resourcing of sustainability teams reflects an outdated view of ESG as a cost centre. Studies show that the opposite is true. PwC’s analysis of over 4,000 companies found that more than 80% are maintaining or accelerating their climate commitments, and sustainable products increase revenues by 6% to 25% compared with other products. IBM’s research demonstrates that companies embedding sustainability enjoy significant profitability and revenue advantages. These findings suggest that investing in sustainability is not just ethically right but financially prudent.
To unlock this value, organisations must:
- Shift mindsets – from viewing sustainability as a reporting obligation to treating it as a catalyst for innovation and differentiation.
- Reallocate resources – invest in tools, training and headcount to enable teams to focus on strategic initiatives rather than administrative tasks.
- Empower teams – ensure sustainability professionals have the authority, support and pathways to influence decisions across the organisation.
- Set ambitious yet achievable goals – align targets with global frameworks such as the Paris Agreement and make them central to business planning.
- Celebrate progress – share success stories, from emissions reductions to new sustainable product launches, to maintain momentum and build stakeholder confidence.
Conclusion
The data is clear: sustainability teams across the UK and Europe are being asked to do more with less. Under‑resourcing, misalignment with business priorities and an overemphasis on reporting are undermining progress towards net‑zero and other ESG goals. At the same time, the evidence shows that organisations that embed sustainability throughout their operations enjoy higher revenue growth, profitability and talent attraction. In other words, investing in sustainability is not a luxury – it is a strategic necessity.
As sustainability professionals, we must continue to advocate for the resources and support we need. To senior leaders, the message is urgent: if you are serious about your ESG commitments, empower your teams with adequate budgets, tools and authority. Align sustainability with core strategy, leverage technology to ease reporting burdens, and embed ESG considerations into every decision. Only then will we move from compliance to transformation, and from under‑resourced frustration to sustainable success.
I invite fellow sustainability practitioners to share your experiences: how are you managing under‑resourcing in your organisation? What strategies have helped align sustainability with business objectives? Let’s build a community of practice, learn from one another and ensure that sustainability remains a powerful driver of change and business value.
If your organisation needs help addressing a resource gap, or leveraging technology for greater efficiency and ultimately achievement, Ikano Insight is here to support you. Or simply reach out to me personally, I’d love to chat with you.
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Written by Innes Christison
Senior Sustainability Business Analyst
With experience as a Head of Sustainability and supply chain expert, Innes has helped brands including Tesco, KFC and Wowcher turn sustainability strategies into enablers for growth.
Expert in carbon passporting, measuring and managing carbon across the full supply chain, Innes now works with businesses across all sectors to simplify, streamline and optimise their entire ESG reporting requirements.
You can follow Innes on LinkedIn here.
