Niki Armstrong, CALO at Pure Storage, leads People & Legal orgs, driving compliance, risk, ESG, talent strategy, development & diversity.
Lately, we’ve seen growing discourse about dialing back environmental, social and governance (ESG) initiatives or minimizing corporate messaging associated with sustainability initiatives. Sometimes it’s due to legitimate challenges, like evolving regulations, financial trade-offs or the current political landscape. But often, there’s a deeper issue at play. These pledges weren’t built to last because ESG was never embedded in how the business actually runs.
ESG frameworks are the metrics by which companies can measure their alignment with pre-defined sustainability and social initiatives. These can include commitments to lower carbon footprints, hiring and promoting certain social groups and developing more streamlined, efficient operations.
If we want these goals to stick, we have to move ESG goals and initiatives into our core business strategy. After all, in a world where AI and data usage are fueling a new wave of energy demand, ESG can’t just be a feel-good statement. It must be part of how we lead, operate and innovate.
Start Where Impact Begins: People And Policy
As someone who leads both people and legal teams, I know that ESG success depends on system alignment. When legal, HR and operations are aligned, companies are better equipped to design for sustainability, embed ethical risk management and drive long-term outcomes. ESG principles must play a vital role in decision making, team management and accountability for everyone, from the junior team member to executive leadership. Building them into a company’s DNA will require the same foundation like any other business priority: structure, accountability and cross-functional ownership. That starts at the top, with board oversight and executive sponsors who are accountable for driving progress.
It’s also important for leadership to establish cross-functional ESG working committees. With these teams, companies can develop visibility that ensures different departments are working together and continually aligned on ESG goals. For example, a company’s sustainability program could be overseen by three executive sponsors, like the chief officers of administrative and legal, tech and finance. This team could meet quarterly to review progress, address tradeoffs and discuss initiatives in the context of broader business goals. Approaching ESG this way moves it from aspiration to action.
3 Ways To Turn ESG Into A System
There are three methods companies can use to take ESG initiatives past the messaging stage.
1. Make ESG A Leadership Capability
ESG shouldn’t sit with one department. It should be a mindset that shapes how leaders think, plan and manage. That means embedding relevant values and principles into leadership development, talent decisions and performance systems.
HR and legal can partner to build ESG literacy across leadership and tie it to real accountability. For example, they could launch a global sponsorship program to support the growth and retention of diverse, high-performing talent. This would help ensure equitable access to leadership opportunities and enhance organizational resilience and innovation.
Pay equity is another area where leadership commitment matters. Compensation programs can reward performance and contributions while ensuring consistency. Conducting semi-annual pay equity reviews with an independent, third-party firm can support the accountability necessary for ESG initiatives to become effective.
2. Build A Culture Of ‘Permanent Beta’
A strong ESG strategy is not static; it’s built on the mindset of “permanent beta,” where improvement is constant and intentional. We must build to evolve, not to impress. Just as we approach product development, ESG efforts should focus on doing more with less, like maximizing energy and water use, minimizing waste and designing for longevity.
To ensure accountability and continuous improvement, companies can conduct formal assessments to evaluate their impact on society and environment. With this information, companies can identify and prioritize material sustainability impacts, risks and opportunities, then form a plan to keep evolving as expectations, risks and opportunities shift.
3. Ensure Cross-Functional ESG Governance
ESG implementation is a complex undertaking, and organizational governance should reflect this. Legal, HR and business executives should co-own the sustainability policies that shape how the company behaves, especially around ethics, people practices and performance.
Both ESG risk and opportunity should be embedded into the business life cycle, not bolted on as an afterthought. For example, the company code of conduct should have clear ESG-related language that covers topics like bribery, corruption, environmental stewardship and human rights. Additionally, legal and cyber teams can work together to audit important functions like privacy protection and incident response processes. That’s the kind of governance that moves ESG from intention to execution.
A Business Advantage
With changes in the political landscape and regulatory pressures diminishing in certain areas, there can be a natural temptation to push anything ESG-related to the back burner. But that’s a short-sighted move because following through on these commitments is a competitive edge. For example, it helps in talent attraction and retention. More than 1 in 3 employees “weigh ESG highly” in how they view their employer, according to a 2024 PWC survey. ESG initiatives can also help attract and retain customers. Additionally, a commitment to sustainability practices, through energy-efficient technology, can keep costs down, preventing companies from passing rising costs onto the customer.
When ESG is embedded across a company’s overall strategy, it leads to value creation and long-term resilience. Rather than a mere symbolic act, these initiatives become a business practice that builds trust, drives innovation and creates a sustainable competitive advantage.
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