Measuring Sustainability. Creating Value.
Source: “Measuring Sustainability. Creating Value” by Accenture
While implementing sustainable practices within a business can be challenging, leaders are starting to see that improving ESG (Environmental, Social, and Governance) strategies can increase the performance of their business! Accenture recently developed a “Measuring Sustainability. Creating Value” report highlighting four key questions businesses should be asking to measure and manage their sustainability practices:
What’s the impact of ESG on existing business models?
Internally, businesses can commit to sustainability by creating a vision that includes new sustainability goals and allows them to explore associated risks and opportunities. Externally, because ESG is equally important to their market, a business needs to show public commitment and transparency.
As the destination is sustainable performance, what’s the route?
After setting new sustainability goals, the next step is to plan the route to them. The report notes that, “mapping a clear route and measuring the business impact of sustainability is key.” There’s no right answer to this question or a correct path to take because every business is different! For some, it may require shifting their business model completely, while for others it could be just securing more eco-friendly partners. No matter where a business lies in their journey to sustainability, they should focus on measurement, accountability, and effective management.
How does the right ESG data inform the route?
Most companies have not yet extended their measurement capabilities and infrastructure to ESG data. Business leaders can define a plan, set clear objectives and metrics, and use the new technologies quickly emerging to help develop their strategy.
How can sustainable performance be communicated to all stakeholders?
As mentioned above, sustainability is becoming more important to stakeholders. This means that businesses need data to meet their needs. The key element here is to have a unified approach to what sustainability/ESG is internally. When everyone is on the same page, decisions can be made to rewire the metrics used for reporting ESG data to stakeholders.
To view the full report, visit Accenture.
Check out the most recent posts
Over the past decade, businesses have been feeling the pressure to move toward more sustainable practices. With the effects of the COVID-19 pandemic, many were forced to re-examine their supply chains.
As sustainability continues to become a driving force for companies, it’s important to understand the extent of the efforts being taken by companies across the United States. Many companies and organizations have sustainability goals set in order to meet stakeholder and customer expectations.
Since sustainability is still relatively new to procurement practices, the ability to express these benefits in financial terms is one of the key drivers needed to make a case for implementing sustainable practices into business models.
Our society, planet, and markets are changing at a rapid rate, so we must ask ourselves if the sustainable efforts we’re making now are enough.