Sustainability Strategy
Our society now recognises the importance of environmental, social and governance (ESG) considerations to our future. This importance will amplify due to a rapidly changing legal and regulatory environment and because investors, stakeholders and policymakers are now more focused on ESG risks and opportunities than ever before.
This represents a challenge to companies and their Boards. The breadth of issues the ESG banner covers can make it challenging for organisations to understand what they must do to manage these risks and opportunities. Critical links have now been drawn between climate change, economic growth and broader sustainability and social objectives.
The increased legislative focus at the EU level on ESG-related issues aims to:
- make companies more accountable for their impact
- avoid greenwashing
- direct capital towards more sustainable companies and investments
- allow investors to take into account sustainability-related risks and opportunities
- identify risks which could threaten financial and economic stability.
There is a strategic imperative for organisations to change the role they play to preserve their social license to operate. This means that organisational objectives (including profit) must come from solving and NOT creating the world’s problems.