At The Gap Partnership, we engage in regular discussions with our clients about adapting to changing business priorities and how this impacts negotiations across their organizations.  

In recent years, a prominent trend has emerged, emphasizing the growing significance for businesses to demonstrate tangible progress in corporate sustainability goals both internally and externally. Failure to take effective action now poses clear risks for companies. 

This trend aligns with the findings of TGP's latest research on negotiation trends, based on a global survey of over 800 senior executives from diverse industries and geographies. The survey revealed that 32% of respondents prioritize sustainability as a core aspect of their business, while another 36% stressed the need for greater collaboration on sustainability with key partners. The main drivers behind this focus were meeting customer expectations, conforming to regulatory requirements, and aligning with company goals and values. The survey provided intriguing insights into how priorities and drivers differ across industries and geographies. 

A pertinent question to explore is the key obstacles businesses face when striving to accelerate their sustainability progress. Our clients commonly report several recurring themes that hinder their sustainability efforts: 

1. Sustainability is often confined to discussions among experts, failing to be a priority for most teams in the business. 
2. The focus on sustainability is perceived as secondary to tangible, short-term value reflected in the profit and loss (P&L) statement, particularly given the current volatile market conditions and rising prices. 
3. There is a lack of alignment on the value of sustainability for the business. 
4. Sustainability is not treated as a negotiation topic, as the trading terms already outline the expected behavior from partners. 
5. Negotiators lack the confidence or authority to address variables connected to environmental sustainability. 

Clients increasingly turn to us for guidance on overcoming these challenges and effectively negotiating sustainability in their operations. 

Patrick Shewell, Global Head of Sustainability at Mondelēz International, shares insights into the importance of integrating sustainability into negotiation agendas for all business functions. When we spoke to Patrick, he emphasized the need for buyers to embed sustainability into their existing practices to push suppliers to do more. He also encouraged buyers to spend time looking for collaboration opportunities with suppliers. He also encouraged buyers to actively seek support from internal sustainability teams to provide quality data and insights for improving existing sourcing practices. 

At TGP, we offer various ways to support your business in embedding sustainability across different functions and enabling more effective negotiations related to sustainability including: 

• Strategic support for internal alignment, helping stakeholders agree on appropriate sustainability goals at a functional level and highlighting the tangible value of sustainability for your business. 
• Customized content, such as workshops and webinars, to empower your negotiators to ask more effective questions, ensure sustainability is a priority in negotiations, avoid siloed discussions, and view sustainability as an opportunity for value creation rather than just a cost or minimum requirement. 

Feel free to reach out to us for more information on how we can assist your business in navigating the realm of sustainability in negotiations and for a more comprehensive discussion.