Corporate
Sustainability
INTERNATIONAL OBJECTIVES, TRENDS
The “road we are walking” leads the planet and society nowhere. Realizing this fact, world leaders decided at the UN summit held in 2015 that we need to pave new ones. They committed to end poverty, fight climate change and stand up against injustice.
The UN Sustainable Development Goals (SDGs), if achieved, will enable the whole world and billions of people around it to create a more livable future for themselves by 2030. Unanimously adopted by 193 countries, the 17 Goals have set a new standard for development with the clear ambition to leave no one behind. They call for action not only from governments, but also from the business sector and civil society worldwide.
SUSTAINABLE DEVELOPMENT
Definition of sustainable development was released in the report ‘Our Common Future’ in 1987 by the World Commission on Environment and Development (chaired by Gro Harlem Brundtland). According to the report “Sustainable development is development that meets the needs of the present without compromising the ability of future generations to meet their own needs”.
Corporate Sustainability
Corporate sustainability is a business approach that increase the companie’s value in long-term (even its shareholder value) by embracing the opportunities and minimising the risks deriving from economic, social and environmental developments. Corporate sustainability leaders achieve long-term value by gearing their strategies and management to harness the market’s potential for sustainability products and services while at the same time successfully reducing and avoiding sustainability costs and risks. [source: Dow Jones Sustainability Index]
Topics of corporate sustainability according to the triple bottom line are the following (without aiming for completeness). They may be further shaped and complemented by industry-specific issues, the characteristics of the operating environment, as well as the actual circumstances.
ECONOMIC DIMENSION
- Corporate responsibility
- Risk and crisis management
- Ethics and Code of Conduct
- Customers
- Supply chain management
- Sustainable marketing and Brand management
- Innovation management
- Compliance
- Reporting practices
ENVIRONMENTAL DIMENSION
- Climate strategy
- GHG inventory
- Environmental policy / management system
- Environmental performance (eco-efficiency)
- Net zero target
- Renewable energy use
- Fleet management
- Waste management
- Water management
- Biodiversity
SOCIAL DIMENSION
- Diversity strategy
- Equal opportunity plan
- Employment practices
- Gender Pay Gap
- Ratio of women in leadership
- Inclusive workplace environment
- Human rights
- Human capital development
- Workplace health and safety
- Data protection
ESG
In today’s business world, ESG is gaining increasing importance as an approach that integrates sustainability into organizational operations along three dimensions: Environmental (E), Social (S), and Governance (G). The rise of ESG was primarily driven by the expectations of responsible investors: an increasing number of asset managers required companies to demonstrate how sustainability is embedded in their activities.
The definition of ESG can be understood as a framework or set of criteria used to measure the sustainability of an investment or a company, focusing on three areas: environmental, social, and governance. While the term ESG is often used in the context of investments, the range of stakeholders extends much further – including regulators, customers, suppliers, and employees, all of whom are increasingly concerned with the sustainability of an organization’s operations.
Today, the significance of ESG has become undeniable. Beyond investors, companies face growing pressure from society and regulatory bodies to operate responsibly and transparently.
In this sense, sustainability represents the goal, while ESG provides the tool to measure and achieve it.
MISCONCEPTIONS
Corporate sustainability is supported not only by the concept of sustainable development, but also by related applied theories such as Corporate Social Responsibility (CSR), stakeholder theory, and corporate accountability.
It is a complex strategic and operational process that affects the entire corporate structure. Corporate sustainability cannot be achieved overnight; however, if the intention is genuine, systematic steps and persistent effort can create long-term value both for the company and for society as a whole.
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Corporate sustainability is a complex field with rapidly changing regulations. Many companies have just come out of compliance, others are facing new requirements. If you are unsure whether you are subject to the CSRD, whether you need to prepare an ESG report, or simply want to understand what services can help you, here is your chance to ask.
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- we help interpret regulations relevant to your company,
- together we map your needs,
- and we set direction for your next steps.
No commitment, no cost – just a clearer picture and more confident decisions.