This report—based on a survey of 70 corporate sustainability and environmental, social & governance (ESG) leaders at US and multinational firms—examines and shares best practices on how companies structure and position their sustainability teams, how they interact with other business functions, and how those choices shape overall efficiency and effectiveness.

Trusted Insights for What’s Ahead®

• Most surveyed companies favor a “hybrid” internal sustainability structure—combining a lean central team with distributed responsibilities across business units—as it enables strategic oversight, operational integration, and efficient use of resources.
• Half of surveyed firms plan structural adjustments over the next two years to strengthen sustainability coordination and alignment to allow for closer business integration, long-term resilience, and regulatory readiness.
• Most companies embed sustainability into some processes but not enterprise-wide; over the next two years, survey respondents expect to integrate sustainability more deeply in functions such as finance, procurement, and risk management.
• A cross-functional steering committee is the most-cited way to advance sustainability integration, but broader change management is needed to address cultural barriers and competing mandates.
• The most notable sustainability talent gaps—financial modeling, change management, and data analysis—reflect the function’s shift toward core strategy and decision-making, although budget limits mean only 60% of firms plan to add roles in the next two years.

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