The phrase ‘ESG strategy’ is on nearly every business owner’s lips these days. But the fact is that not many executives know how to make ESG initiatives an everyday part of their commercial decision-making processes. The difference usually comes down to people – not a lone sustainability manager squirreled away in a corner, but a group of leaders across the board who take it seriously and understand what it actually looks like in practice.

Perhaps the most important thing to remember is that ESG isn’t merely about reporting or checking boxes. It’s also how a company hires, operates, invests, manages risk, and builds long-term value. All of that can only be done if the right roles are involved and working together.

Here are a few of the leadership areas that quietly do the heavy lifting when it comes to ESG strategy development.

People And Culture Leadership

If the goal of ESG is to influence how a company behaves, it starts with people. Hiring, inclusion, culture, wellbeing and ethical leadership all sit here. Solid people leaders know how to move ESG from a slide deck into real behaviour.

Many HR experts are now developing such skills through additional learning, such as a master of human resource management. These courses tend to cover topics like ethical leadership, diversity, governance and organisational change. That kind of grounding is important because policies alone don’t shift behaviour. People do.

The fact is, leaders can talk about values all they want, but if they don’t live them, that strategy goes south in a hurry. People and culture teams can get involved by making sure that incentives are aligned, accountability is prioritised, and ESG isn’t just something their marketing teams are talking about.

Finance And Risk Leadership

There is a very real financial side to ESG. Climate risk, supply chain resilience, compliance, investor expectations, and creating long-term value all fall under this umbrella. That means finance and risk leaders play a bigger role than many businesses initially anticipate.

They’re the ones asking real questions. What does this mean for cost? For insurance? For capital allocation? How can we measure impact without drowning in reporting? How do we prevent greenwashing and stay credible?

When finance leaders actually take ESG seriously, it goes from a ‘nice to have’ to being embedded in your strategy. It also forms trust with investors and stakeholders who are increasingly looking beyond just short-term results.

Operations And Supply Chain Leadership

Dynamic operational processes like supply chains are the place where your ESG strategy either thrives or dies. The vast majority of environmental and social impacts reside within operations and supply chains. Energy use, waste, sourcing, labour practices and logistics all live here.

Operational leaders translate high-level commitments into everyday decisions. Which suppliers do we work with? How do we reduce waste without blowing out costs? How do we balance sustainability, efficiency, and resilience? It’s rarely perfect. Trade-offs are constant. But if this group isn’t at the table, ESG is just a mere theory. 

Strategy And Innovation Leadership

Long-term thinking is fundamental to ESG and that’s where strategy teams can play a crucial role. They serve as a bridge to linking sustainability goals with growth, innovation, and real commercial results, rather than treating them as something separate from the core business.

Instead of asking “How do we comply?”, they’re usually asking “Where are the opportunities?” That might be new products, new markets, smarter partnerships, or even a reimagining of how the business creates value. For some enterprises, ESG ends up being a positive driver of innovation rather than a limitation.

This is also key to keeping everyone on the same page when results aren’t instantaneous. It takes a while for many sustainability initiatives to pay off, and without someone holding the long view, their progress can easily be stalled when budgets are slashed or priorities are shifted. Strong strategy leaders have the ability to keep that larger picture in mind and make sure the work doesn’t lose steam halfway through.

Governance And Board Oversight

None of this is possible without accountability at the top. Boards and senior leaders are responsible for setting the tone, priorities and expectations. When ESG matters at that level, it becomes part of performance conversation, not just a side project. 

Good governance also insulates organisations from reputational risk. It guarantees that reporting is transparent and that decisions adhere to stated values. Just as important is the fact that it sends a signal to employees and other stakeholders that ESG isn’t just a fad. It’s part of how the business plans to operate long-term.

Communication And Stakeholder Engagement

Stakeholder communication and engagement is typically where all the great work either lands or falls flat. Different groups are after different things. Employees want to know what the company stands for. Investors want clear, consistent information. Customers just want straight answers.

It’s not just about glossy reports or perfect messaging. It’s more about being upfront. Saying what’s going well, what’s hit a snag, and what still needs a bit of work. And most people can tell when something’s been over-polished anyway, so honesty does tend to go a lot further.

That also means converting all the technical details to something people can wrap their heads around. If no one understands the progress, it might as well not exist. When you simplify, people stay engaged, ask better questions, and the whole strategy feels more grounded in reality.

Bringing It All Together

Ultimately, ESG works best when it’s part of how decisions are made, not something that you pull out once a year for a report. It shows up in the sometimes mundane day-to-day work, like how teams solve problems and what they choose to prioritise. And that usually comes down to leaders setting the tone and making it clear that this work actually matters.

It won’t always be perfect. Some of it will stick, and some won’t. The main point is to keep moving and adjust as you go. That steady approach means more at the end of the day than getting everything exactly right from the get-go.