Sustainability is now a core performance target in PRINCE2, with clear roles, processes, and tolerances designed to align projects with ESG commitments and long-term value. The sustainability management approach ensures accountability, continuous assessment, and integration of environmental and social impact into every stage of project delivery.
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Learn how PRINCE2 7th Edition integrates sustainability management into projects, covering roles, tolerances, performance targets, and reporting methods.
What is PRINCE2 Sustainability management?
PRINCE2 Sustainability management contains the procedures, techniques, responsibilities, and standards to be applied.
It includes the project’s sustainability performance target and expected success level against which the project management will be judged.
All projects impact their environment, and project management teams need to know the sustainability performance targets for the project work and the products required of the project.
PRINCE2 has been designed to work within any context, including organizational and commercial context, delivery method, sustainability requirements, and project scale.
The sustainability management approach
This forms part of the Project Initiation Documentation and defines the actions, reviews, and controls that will be established to ensure that sustainability performance targets for the project are achieved.
Sustainability tolerance
These are the permissible deviations in the sustainability performance targets allowed before the variation is escalated to the next management level. Sustainability tolerance is documented in the business case.
Sustainability tolerance defines the permissible deviation above and below the plan’s sustainability target without escalating the variation to the next management level. Tolerance is applied at project, stage, and team levels.
Sustainability context
The business case is likely to have sustainability objectives and commitments that the project must adhere to or contribute to, which will inform its objectives and how it is established and managed.
PRINCE2 addresses sustainability requirements by including Sustainability as one of the seven performance targets used to manage the project.
Sustainability is included in the PRINCE2 method through the roles (sustainability responsibilities), documentation (such as plans and reports), practices (such as the business case), and processes (such as activities to confirm sustainability requirements).
In everyday usage of the term, Sustainability is often synonymous with the environment, but Sustainability can mean different things to different organizations.
For some, it may relate to the environmental impact of the project work, while for others, it may relate to the whole-life cost of the products delivered by the project and their resilience in operations.
Some projects may have Sustainability as their very purpose, such as installing solar panels.
Manage By Exception
Accountability is established by delegating authority from one management level to the next by setting tolerances against the seven aspects of performance (benefits, cost, time, quality, scope, Sustainability, and risk) for the respective level (project, stage, team)
Sustainability tolerance
The degree to which the project product or activities required to deliver the project can vary from sustainability targets; for example, a new production line operated within five per cent of an emissions target and was provided using around 70 per cent of the workforce from the local community.
The permissible deviation in the sustainability performance targets allowed before the variation must be escalated to the next management level. Sustainability tolerance is documented in the business case.
Business Case economic perspective
Identifying the option that delivers the best value, including broader social, environmental, and Sustainability considerations. The United Nations defines 17 sustainability development goals to improve health and education, reduce inequality, and encourage economic growth while tackling climate change.
Many organizations have signed up to align with these targets. Organizations may define specific business objectives related to improving Sustainability and specific organizational policies, targets, and frameworks to achieve their ESG commitments.
It is essential that the sustainability targets for the project align with the organization’s broader objectives along with any ESG targets it has defined.
If a project’s primary purpose is to satisfy a sustainability objective, traditional investment appraisal methods may not be effective when assessing its business justification.
For example, a project to build a flood defence barrier, where benefits may not be achieved for 20 or 30 years, may be difficult to justify using discounted cash flow methods, where the future value of money, and therefore benefits, is worth less than today.
The approach to assessing business justification may need to be adapted for this type of project.
Sustainability targets: specific targets relating to Sustainability that the project must meet. The targets include sustainability tolerances.
Sustainability management approach
The sustainability management approach is part of the project initiation documentation.
The sustainability management approach aims to define the actions, reviews, and controls that will be established to ensure that sustainability performance targets for the project are achieved.
Sustainability scope describes what sustainability targets are to be managed and measured. In contrast, the measurement describes how to measure the achievement of sustainability targets, when they can be measured, and the baseline measures from which targets will be calculated.
It defines responsibilities, resources and tools for sustainability activities, including who is accountable for measuring the achievement of the sustainability targets.
Role responsibilities for Sustainability
Directing (project board)
The project board authorizes the start and completion of each stage, including setting stage tolerances (such as people, timelines, resources, and sustainability targets).
Project Executive
Accountable for the business case for the duration of the project. Approve the sustainability management approach and be accountable for the project’s duration. The project executive ensures the project remains aligned with the business objectives.
This typically includes targets for environmental, social, and governance (ESG) objectives, the UN’s sustainable development goals (SDG), net zero, waste reduction targets, reuse of materials,
Ensure sustainability risks are identified, assessed, and controlled. Make decisions on escalated risks, with particular focus on continued business justification
Senior supplier
Responsible for sustainability reporting from the supplier perspective.
Senior user
Accountable for agreeing on a sustainability management approach.
Agree on the digital and data management approach from a user’s perspective. For example, product data handover for operational and maintenance needs defines sustainability reporting requirements from the user perspective.
Commit people and user resources.
The Project Manager
Has primary responsibility for managing the relationships within the project to ensure that the project produces the products following the agreed requirements (such as quality, Sustainability, time, cost, scope, benefits, and risk performance goals).
- Monitoring and supporting the safety and wellbeing of team members and the Sustainability of the project approach.
- Developing the sustainability management approach as delegated by the project executive.
- Assess and update the business case, benefits management, and sustainability management approaches at the end of each stage.
- Responsible for sustainability reporting from the project perspective.
- Produce lesson reports, highlight reports, exception reports, end stage reports, and the end project report.
Project assurance
Advise the project manager on the sustainability management approach and confirm with the project board that it complies with business policies.
Assure the project board of the implementation of the sustainability management approach (such as whether the value-for-money solution is constantly reassessed)
Project support
Maintain baseline and change control for sustainability management approach.
Team Manager
Monitoring and supporting the safety and wellbeing of team members and the Sustainability of the team’s approach.
Responsible for sustainability reporting for the team.
Produce checkpoint reports and responsible for sustainability reporting to the team.
PRINCE2 Sustainability Delivery Method
Projects are often the vehicle for driving forward an organization’s sustainability targets, whether that is their primary focus or as a by-product of how they are delivered.
To support this, there should be clear accountability for sustainability targets across the project ecosystem captured in the business case, the requirement setting, and people’s role descriptions.
The organization of the project impacts its ability to deliver sustainably.
The Project Approach should empower team members to deliver sustainably, embedding sustainability considerations into all decision-making and ensuring a diversity of perspectives to challenge the way things have always been done.
The project management team structure and role descriptions should define responsibilities for delivering the sustainability targets, including how they will be managed once the project is concluded.
The commercial management approach should ensure that the way products are ethically procured, and the performance measures applied enable meeting sustainability targets.
Projects rarely have the luxury of fulfilling all user expectations without regard to constraints. For example, a desirable product option with a high energy demand may conflict with sustainability constraints set for the project.
For this reason, it is helpful to prioritize quality specifications for each product to ensure that the most critical requirements are met.
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