The idea of succession planning has been gaining momentum among businesses, but the idea of incorporating sustainability into those plans is a new and growing trend, according to an article from the experts at professional services firm CliftonLarsonAllen.
Companies are starting to incorporate elements of environmental, social and governance into the decision-making process in planning for executive-level succession, they said.
“Sustainable succession is a comprehensive approach to planning for your organization’s future while demonstrating your commitment to sustainability and responsible business practices,” according to CLA. “It helps uphold the organization’s core values and governing principles to be passed down to future leaders, bringing continuity and consistency over time.”
According to the experts, sustainable succession can be developed for all areas of ESG, such as natural resource planning; planning for people, positions and core values; and governing principles planning.
“A well-integrated sustainable succession plan can seamlessly blend into other long-term sustainability initiatives. Sustainable succession is imperative for succession planning to be holistic and long lasting, enabling overall growth of the organization,” the authors wrote.
Unfortunately, 62% of senior living organizations don’t have formal, written succession plans of any kind in place for the CEO position, according to the results of a June Ziegler CFO Hotline survey. The news comes as increasing numbers of leaders are expected to retire in the next five years.
See additional ESG-related news from McKnight’s here.
