Companies should set bold sustainability goals, especially related to employees

• In 2019, Nestlé made a pledge to increase representation of women in senior positions to 30% by 2022.
• Companies need to be bold in setting goals and not fearful of failure, according to one expert.

While many companies set public deadlines on their path to net-zero emissions, goals around DEI targets are sometimes less specific. As corporations strive to engender trust in their sustainability commitments across all the pillars of people, planet, prosperity, and governance, details and timing are important — and need to be treated as business goals.

Transparency can be intimidating. "It's the public aspect of it," said Denise Hummel Isaacson, the CEO and founder of RevWork.ai, a technology platform for scaling inclusive behavior, and a former partner at consulting firm EY in organizational behavior. "There is always the potential to fall short."

Global food giant Nestlé made one pledge that it will be held accountable for in 2022. As part of its Nestlé Gender Balance Acceleration Plan, the Switzerland-based company pledged to increase the proportion of women in the company's top 200 senior executive positions from 20% in 2019 to 30% by the end of this year.

"Promoting human rights wherever we operate underpins all our work," Nilufer Demirkol, Nestle's global head of diversity and inclusion, said via email. "Supporting and promoting gender equality is an important part of this. It ensures that the communities we are helping build are fair, sustainable, and provide dignified livelihoods for all."

Global rollout requires time and mindset shift

According to Nestlé's 2021 sustainability report, the company is making progress, with 27% of the top 200 positions now held by women. Demirkol says the company is "on track" to reach the 2022 goal. "Overall, our pipeline of high-caliber females is strong, with 43.8% of managerial positions currently held by women."

The report also provided an update on Nestlé's rollout of a new parental-leave policy to all its operating countries by the end of 2022, with a minimum of 18 weeks paid parental leave to all primary caregivers, and four weeks leave to secondary caregivers. As of the end of 2021, that policy had been implemented in 64% of its operating countries.

Demirkol says its 2019 goals were realistic and attainable. "At the time, 20% of our top 200 senior executive positions were held by women," she said. "A 10% increase in three years was a realistic goal, given all the initiatives we would have to accelerate to get there."

That does not mean reaching these goals is simple. Nestlé's workforce spans everything from R&D to manufacturing to the corporate C-suite, each requiring its own strategy.

Cultural variations around the globe also complicate the process. "Given the multiple roles women balance every day — personally and professionally — we also need to mentor high-potential female talent, as some may be unwilling to take on a role traditionally held by men, such as in operations for example, because it may not be as accepted in their culture," Demirkol said. "Mentorship and leadership development programs, as well as access to network groups, are key."

It's a complex and multichannel endeavor. "Ensuring flexible and supportive work environments that meet and anticipate women's needs at every life stage are key," Demirkol said. "Retention, succession planning, talent management, and addressing the skills gap are also crucial to challenge the status quo, as is addressing unconscious bias and other elements that could limit a female employee's career progression."

Getting real with setting goals

Isaacson said many companies are afraid to put numbers on their DEI goals out of concern that they'll fall short of the target in a public way. "The majority of enterprise organizations set goals that are really just aspirations," she said. "They are afraid to put a stake in the ground. You have to be fearless about this and not be afraid to fail."

But going public with targets may mean companies will be more likely to take a systematic approach, in the same way they would any other business objective.

"Organizations do not approach DEI the way they do any other business initiative," Isaacson said. "If the goal was to improve sales, they would set that goal, they would have milestones to measure success, they would have an action plan to reach those milestones, and accountability. They would know what the risks are, and what are the barriers."

Public disclosure of stated goals, with a a structured approach to tackling the issue, gives the company the opportunity to speak to outcomes and setbacks, in terms that the business community and employees recognize. "If they are doing it in good faith, there is nothing to be afraid of," she said. "There is continuous optimization — that's what business is."