In today’s evolving business landscape, sustainability initiatives are more critical than ever. However, many organizations struggle to integrate these efforts beyond the compliance box, leaving them siloed within specialized departments. As a result, sustainability managers often find themselves knocking on doors that never open, trying to convince decision-makers to embrace circularity and ESG principles.
In a recent conversation, Roy Vercoulen, founder of Circular IQ, and Thijs Struijk-Kafchi, a sustainability anthropologist and digital entrepreneur, explored why sustainability gets trapped in silos and, more importantly, how to break free through Circularity Storytelling.
Why Sustainability Stays Stuck in a Silo
One major reason sustainability efforts remain isolated is the way they enter an organization. Thijs highlights that many companies adopt sustainability initiatives as a reaction to external regulatory pressures rather than as a strategic driver of growth. As a result, sustainability is seen as a compliance exercise rather than a value-creating endeavor.
“If sustainability enters an organization through compliance, it will remain stuck there. But if it originates from strategic leadership, recognizing its potential for revenue growth and market expansion, then it becomes embedded in business operations.” – Thijs Struijk-Kafchi
This reactive approach often leads to tunnel vision, where companies see sustainability purely as a reporting requirement rather than an opportunity for innovation and efficiency. Without board-level adoption, sustainability remains either a regulatory obligation or a personal mission for a few passionate individuals within the company—neither of which are enough to drive real change.
The Role of Storytelling in Breaking the Silo
To shift sustainability from a compliance checkbox to a core business strategy, companies must rethink how they communicate its value. The key is delivering the right message to the right stakeholder at the right time.
“When someone rings your doorbell, you’re more likely to answer if you know the message is relevant to you.” – Thijs Struijk-Kafchi
Sustainability managers often struggle to get a response from leadership because they present sustainability in a way that doesn’t align with business priorities. Instead of framing it as a moral obligation, organizations need to connect sustainability to what matters most to decision-makers: revenue, efficiency, market access, and long-term business viability.
Embedding ESG into Boardroom Logic
A crucial component of breaking the silo is aligning sustainability with ESG Board Logic. The boardroom operates within specific parameters that drive decision-making, and if sustainability does not fit within those parameters, it will remain sidelined.
Thijs introduces a framework called ESG Board Logic, which aligns sustainability with the five key areas that boards prioritize:
- Business Model Viability: How does sustainability ensure long-term profitability and market access?
- Market Strategy: Can ESG initiatives open new opportunities or strengthen customer loyalty?
- Talent & Workforce: How does sustainability enhance employee engagement and attract top talent?
- Operational Efficiency: Can circular economy principles reduce costs and improve resource efficiency?
- Regulatory Compliance (as a byproduct): How does sustainability keep the company ahead of compliance requirements while creating business value?
By embedding sustainability into these core business areas, it transitions from being a side project to an integrated part of the organization’s strategy.
Circular Economy: Driving Business Value
Another fundamental approach to breaking sustainability silos is leveraging the circular economy as a business driver rather than just a sustainability metric.
“The circular economy is not just about reducing waste—it’s about value creation and value maintenance. It directly impacts business efficiency and competitiveness.” – Thijs Struijk-Kafchi
Unlike traditional ESG efforts that focus on mitigating risk, circularity offers a positive business case by optimizing material flows, reducing dependency on volatile supply chains, and unlocking new revenue opportunities. Companies that successfully integrate circular economy principles into their business models see a direct impact on cost savings, product longevity, and supply chain resilience.
The Cost of Compliance vs. The Opportunity for Innovation
Regulations such as the Corporate Sustainability Reporting Directive (CSRD) and ESRS E5 are reshaping how companies approach sustainability. But if businesses see compliance as the end goal rather than a stepping stone to value creation, they risk spending billions on reporting without reaping the benefits.
“We calculated that compliance alone will cost businesses in Europe around €35 billion annually over the next few years. What if instead of spending it on just meeting reporting requirements, we used that investment to transform business models, improve efficiency, and drive circular innovation?” – Thijs Struijk-Kafchi
A forward-thinking approach treats compliance as a byproduct of an effective ESG and circularity strategy, rather than the main objective. Companies that move beyond compliance and focus on measurable improvements and business innovation will gain a competitive edge.
Practical Steps to Break the Sustainability Silo
- Connect Sustainability to Business Objectives
Instead of leading with compliance, position sustainability as a driver of growth, cost savings, and risk mitigation. - Leverage Storytelling for Different Stakeholders
Tailor the narrative to the audience. Executives care about long-term profitability, while procurement teams may focus on supplier transparency and cost efficiency. - Use Data to Drive Actionable Insights
Instead of overwhelming leadership with complex reports, provide clear, actionable data that demonstrates business benefits. - Start with Quick Wins
Pilot circularity initiatives that showcase measurable benefits, such as waste reduction or cost savings, to build internal momentum. - Ensure Board-Level Engagement
If sustainability is not on the board’s agenda, it will remain a side project. Integrate ESG performance into executive KPIs.
Circularity Storytelling Beyond the Checkbox
Breaking the sustainability silo requires a shift in perspective. Companies must stop seeing sustainability as a regulatory burden and start viewing it as an opportunity for innovation and strategic growth.
By telling the right story to the right stakeholder at the right time, aligning ESG initiatives with board priorities, and using Circularity Storytelling to drive actionable business decisions, companies can integrate sustainability into their core operations and create lasting impact.
Are you ready to break the sustainability silo in your organization? Start by aligning your circularity and ESG initiatives with business priorities, engaging leadership, and leveraging data-driven storytelling to drive real change.
