How do sustainability and ESG complement each other?

Sustainability refers to the ability to meet current needs without compromising the ability of future generations to meet theirs. It is a broad concept that emphasises the creation of long-term environmental, social and economic value. At its core, sustainability centres on optimising practices to protect resources, balance environmental and social impacts and guide strategic vision. In many organisations, sustainability serves as the overarching goal that manages risk, shapes priorities, drives decisions and informs long-term planning.

Performance across environmental, social and governance factors is measured using ESG frameworks. It helps stakeholders evaluate how a business manages risks and opportunities in these areas through strong governance and transparent reporting standards. Often linked with investor interest and business accountability, ESG provides principles and metrics to assess and quantify a company’s impact and operations. By facilitating strategic alignment with ethical and operational standards, ESG frameworks, such as those from the IFRS Foundation, make sustainability strategies tangible. They enable organisations to track progress and communicate their alignment with investors.

The complementary approach formed by the combination of sustainability’s long-term vision and ESG’s practical structure enables organisations to address today’s complex global challenges, allowing businesses to meet stakeholder expectations while maintaining resilience.

Despite the growing integration of sustainability and ESG into organisational strategies, businesses face persistent challenges such as intensifying climate risks, evolving carbon management requirements and complex stakeholder dynamics. For instance, efforts to reduce Scope 3 emissions fall under the environmental pillar of ESG, as they involve engaging across the value chain to foster more sustainable supply chains while driving positive sustainability impacts and encouraging innovation.

Another example is when businesses face a lack of diversity in leadership. The application of an ESG framework enhances the existing governance and social pillars, enabling the creation of diversity policies, with a direct impact in strengthening long-term organisational resilience and reputation. The social and governance pillars can be applied separately. When organisations have poor stakeholder trust in projects, leveraging the social dimension can activate stakeholder engagement practices that promote social license to operate and long-term project viability.

Organisations new to sustainability or ESG should treat it as an ongoing journey rather than a one-off task. As expectations evolve across corporate, stakeholder and public domains, strategies must adapt. A strong starting point is a sustainability strategy aligned with the organisation’s purpose, values and sector, highlighting key stakeholder concerns and areas of greatest impact.

This strategy should be dynamic, with ESG targets and metrics set to monitor progress and recalibrate actions as needed. Transparent reporting enables accountability and supports continuous improvement. The goal is not immediate perfection but learning and evolution. Sectoral maturity varies, so benchmarking should be thoughtful. Leading financial institutions, for example, have long integrated ESG into investment and product design, showing how early, iterative action builds resilience, credibility and competitive advantage.

At GHD, we understand these challenges and provide innovative, multi-disciplinary solutions tailored to your organisation’s specific needs. By combining our capabilities in climate risk assessments, carbon strategy development, infrastructure sustainability and ESG reporting, we enable our clients to mitigate risks, enhance transparency and improve resilience in a fast-evolving landscape.

We led the environmental impact assessment for a proposed gold mine in Eastern Canada, helping our client navigate Nova Scotia’s complex permitting landscape. The site was affected by historic mining tailings with elevated arsenic, mercury and iron levels, and required detailed studies to assess and mitigate environmental and health risks. We conducted hydrological, air, noise and light modelling, as well as socio-economic assessments, and developed a Historic Tailings Management Plan. We also supported water management design and regulatory engagement. The work enabled on-time submission and fast approval of the environmental assessment in August 2022, paving the way for construction to begin in 2025.

Through emissions forecasting and tools like Carbon Offset Scoring Rubrics, our teams guide organisations in reducing emissions and achieving net-zero goals. These tailored strategies yield significant long-term benefits for both the environment and business viability.

We helped Vontier build a strong carbon management foundation by developing a GHG inventory and setting science-based net-zero targets. These supported stakeholder engagement and ESG software deployment, giving Vontier the tools to drive their climate strategy and reduce emissions.

Infrastructure projects shape communities by providing services, improving connectivity and supporting economic development. They can also have significant environmental, social and economic impacts. Embedding sustainability from the planning stage delivers positive impacts aligned with sustainable principles.

As part of the Tonkin Gap Alliance, we developed and implemented a comprehensive sustainability management system for the Tonkin Gap Project and Associated Works. This system embedded sustainability into design and construction, helping the project achieve a Gold v2.0 Infrastructure Sustainability (IS) rating.

We have also been collaborating with Main Roads Western Australia to integrate sustainability into the planning phase of its projects. Our work supports Main Roads' commitment to achieving higher sustainability standards through the IS rating scheme and embedding sustainability from the earliest stages of project development.

We enable organisations to streamline ESG maturity evaluations and enhance reporting accuracy. This supports compliance with evolving regulatory standards and enables transparent communication with stakeholders about progress and commitments.

We created a plan and finance roadmap to help Pacific Island nations decarbonise their maritime fleets by 2050. Recommendations focused on better fleet maintenance, low-tech solutions like wind-assisted propulsion and cleaner engines for small vessels. The project estimates a USD 1.5 billion investment over 30 years to achieve zero emissions and improve community health.

With a focus on social equity, we implement strategies to foster inclusive infrastructure development and ethical supply chain practices. This approach helps guarantee that the community is actively engaged and benefits holistically from every project.

To learn more about how we can support your sustainability and ESG goals, visit our ESG and Strategic Sustainability page.