The Five-Step Sustainability Integration Model was developed by the UN Global Compact initiative for integrating sustainability and helps companies along the entire journey from compliance to the strategic integration of sustainability issues, in order to create transformative positive change that can contribute to the systemic shift required for a regenerative future.

Below you can read the explanation for what each level entails.

Level 1 - Compliance

In this level, also called “the crisis” level organisations meets basic legal requirements with minimal ESG integration; sustainability is treated as a cost and remains largely reactive. This level is charactarized by;

  • Basic legal adherence

  • Siloed, reactive initiatives

  • Limited ESG awareness

  • One or a limited group are sole responsible

Level 2 - Risk & Stakeholder Aligment

In this level, which organisations usually get to quite soon of level 1, organisations realize the demand of sustainability from their customers and stakeholders and do whatever to fulfill those expectations. This means that the organisation voluntarily adopts standards, addresses stakeholder concerns, and manages ESK risks, though sustainability actions remain peripheral. This level is usually charactarized by;

  • Basic reporting & certifications

  • Stakeholder-driven adjustments

  • Focus on risk mitigation

  • Customer-driven

Level 3 - Operational Integration

In this level, organisations make their sustainbility work cost-effective and integrated in all daily operations. It usually means learning about incorporating ESG metrics into core operations, improving efficiency and resource use, and engages cross-functional teams for continuous improvement.This level is charactarized by;

  • ESG KPIs in core processes

  • Efficiency & resource optimization

  • Cross-functional ESG collaboration

Level 4 - Strategic Value Creation

Organisations often that then find that they can use sustainability as an strategic advantage and a leverage for increasing value and marketshare. That usually means aligning sustainability with long-term goals, drives innovation, enhances brand value, and leverages ESG as a strategic competitive advantage. Typical for this level is;

  • Science-based targets & circular models

  • Sustainability-driven innovation

  • Market differentiation & brand enhancement

Level 5 - Achieving Transformative Impact aka

becoming a fully regenerative organisation

Organisations on this level, generates net-positive outcomes, influences industry standards, shapes policy, and propels systemic changes that redefine market expectations. They stand out from the rest by bringing;

  • Net-positive environmental & social impact

  • Industry leadership & policy influence

  • Systemic, market-level transformation

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