And how is it different from a Strategy or Report?
Businesses are increasingly being asked to provide a sustainability policy.
It might come from a customer, a procurement team, an investor, or a supplier questionnaire. Often the request is simple:
“Please share your sustainability policy.”
But this leads to understandable confusion. Many organisations ask:
- Do we actually need a sustainability policy?
- What should it include?
- How is it different from a sustainability strategy or impact report?
This article explains what a sustainability policy is, why it still matters, and why a policy alone is rarely enough to demonstrate real progress.
What is a sustainability policy?
A sustainability policy is a formal governance document.
It sets out:
- your organisation’s commitment to sustainability
- the principles you intend to follow
- the areas you recognise as important (environmental, social and governance)
- how responsibility is managed at a high level
In simple terms, a policy explains what you stand for.
It provides consistency, accountability and clarity – particularly for external audiences.
Many organisations still require a sustainability policy, including:
- large customers and supply chains
- public sector procurement
- frameworks such as ISO, EcoVadis and B Corp
- investors and lenders reviewing risk and governance
From a governance perspective, a sustainability policy is often essential.
Why a sustainability policy alone is not enough
While a sustainability policy is important, it rarely delivers impact on its own.
A policy does not usually explain:
- what you are prioritising
- how progress will be measured
- what success looks like
- how teams are expected to contribute
- what actions will be taken this year
As a result, many policies sit on websites or shared folders without influencing decision-making.
This is where businesses can become stuck – compliant on paper, but unclear in practice.
To improve sustainability in a meaningful way, organisations need more than intent. They need structure, direction and ownership.
Sustainability policy vs sustainability strategy
This is where the distinction becomes important.
A sustainability strategy sets the direction of travel.
It typically defines:
- your priority sustainability topics
- where your business can have the most impact
- short-, medium- and long-term objectives
- how sustainability links to business goals
- what will be measured and reviewed
If a policy says what you believe,
a strategy explains what you are going to do.
The most effective organisations develop a strategy first, then ensure the policy reflects those decisions.
Sustainability policy vs impact report
An impact report serves a different purpose again.
It is used to:
- communicate progress
- share data and outcomes
- demonstrate credibility to stakeholders
- provide transparency
Where a policy looks forward, an impact report looks back.
It shows:
- what actions have been taken
- what has changed
- where progress has been made
- where challenges remain
Many customers, employees and investors care far more about this evidence than the policy itself.
How these pieces should work together
Strong sustainability does not rely on one document.
It relies on a connected approach:
- Policy – governance and commitment
- Strategy – direction, priorities and focus
- Measurement – tracking progress
- Engagement – bringing people with you
- Reporting – demonstrating outcomes
When these elements align, sustainability becomes easier to manage, easier to explain, and far more credible.
Our approach
When we support organisations, we rarely start with writing a policy in isolation.
Instead, we help businesses:
- clarify what matters most to them
- set a clear direction of travel
- agree what success looks like
- identify practical measures
- engage people across the organisation
- then develop governance documents, including a sustainability policy, that reflect reality
This ensures the policy is not just compliant – but meaningful.
So, do you need a sustainability policy?
In many cases, yes.
A sustainability policy remains an important governance tool and is still required by many organisations.
But it should not be the only thing you rely on.
A policy explains intent.
Strategy drives action.
Measurement builds confidence.
Reporting creates trust.
Together, they help sustainability move from a document to a difference.
Get in touch if you would like support to develop your sustainability approach.