Sustainability priorities and their competitive growth value

Sustainability appears to have dropped down the list of strategic priorities of leaders but there’s a reason for this. For most of our clients, it is rightly becoming a natural part of the business activities and operations. This is why it’s still a top strategic priority with 25% of C-suite executives for the next three to five years – for those that understand the competitive advantage this brings.

 Setting your own standards alongside compliance 

In an environment of increased competition, large companies will not work with you unless you have a net-zero plan or commitment. 

Businesses need to ensure they’re reporting on the data that’s material to their business. That’s the difference between doing reporting for reporting’s sake and reporting on topics that have a direct and long-lasting impact on the company. 

While most businesses based in Europe that have a regulatory obligation to report are clear on what should be covered, there is still complexity in other regions where expectations and cultural differences interplay. However, it is essential to have standard sustainability requirements and commitments across all aspects of the business and its supply chain that is relevant to you. I’ve seen organisations struggle to report on the likes of biodiversity, for example, yet it had no impact to their business, and they feel pressure to say something. 

Value chain dependencies 

How you look after your values and your work across supply chains will depend on what sector you’re in. In retail, for example, the governance element of ESG isn’t as prominent now as the focus it’s had in recent years has resulted in a much better understanding of what’s expected, and what can be implemented to set organisations apart. These days, if you’re in that space, you can’t continue to operate, let alone, compete without putting some of these ESG measures in place. This is where other sectors can take note. 

Where many are just following a process to finalise a report they’re obligated to create, C-suite leaders need to address the underlying problem and create controls around how robust their ESG data points are. You need to have a plan for how you’re going to collect that data, and how you can improve and better automate each year. This includes controls for appropriate comparatives throughout.

Establishing confidence in your markets 

The whole process of responsible reporting starts with what’s material, or relevant, for your business and your target markets. Going through that filtering process, you only keep what’s material. This is key to establishing confidence with consumers and investors who will then be pleased to see that, while addressing your ESG risks and opportunities, you’re also addressing your impact on society and the environment. 

Overall, I’m happy to see that leaders didn’t just select ‘all the above’ for topics they’re addressing in their reports and are beginning to be more selective on what impacts their businesses directly. 

Sustainability reporting may never be as simple as a one size fits all initiative and priorities remain different across organisations, across sectors and around the world. What is certain is that sustainability is like dust – it settles everywhere and not having the right approach in place that’s relevant to your business is the difference between basic (or bare minimum) compliance with the regulation and standing out as true leaders of transformation and best practice for the future sustainability and legacy of your organisation