The value of sustainability
As the climate and ecological crisis escalates, awareness of environmental and societal issues becomes increasingly critical across all sectors. In 2023 businesses will need to accelerate their efforts towards sustainable value creation and leverage opportunities to become drivers of change.
Governments around the world continue to set ambitious decarbonisation targets with many also broadening metric requirements to include societal measures. This increases regulatory reporting requirements that can influence the financial and reputational credentials of companies, and the personal fiduciary duties of board members. It’s also important that businesses don’t overlook the physical risks to operations, infrastructure and supply chains that can be caused by a rapid transition to a low-carbon economy.
Sustainability remains key for talent retention and recruitment, with 81% of workers expecting their employers to take action on climate change, and 75% of millennials (who will make up the majority of the workforce by 2025) who would consider a decrease in salary to work with a company focusing on environmental responsibility.
On the consumer side, Deloitte found them more likely to purchase from companies that produced sustainable products and reduced waste in their processes. Their preferences were also for businesses committed to ethical working practices, reducing their carbon footprint, and actively valued human rights.
Companies choosing to integrate sustainability into major decisions can build resilience and demonstrate consideration for future generations.
Some key actions can include:
• Screening key suppliers for environmental and societal sustainability credentials along with authentic, published sustainability strategies
• Adopting procurement processes to consider re-usable and refurbished equipment options, aligning with circular economy principles
• Investing in high-speed connectivity to enable automation and remote operations, boosting efficiency and flexibility, and reducing emissions.
Helene Narcy Chief Financial Officer
“Sustainability remains key for talent retention and recruitment, with 81% of workers expecting their employers to take action on climate change.”
