It’s Climate Week, which seems like a good time to focus on environmental stewardship.
But that’s too easy. Let’s think bigger.
Companies are finding that their business success is inextricably linked to the world around them. Sounds obvious, but it’s a fairly recent development: climate change is one of a wide range of non-financial issues that impact performance. Public companies were traditionally measured by how successfully they generate profit and returns for shareholders, rather than how they operate on a more holistic level.
Over the past year, however, stakeholder capitalism has displaced that notion. Companies not only serve shareholders, they are responsible for their workforce, communities, customers, vendors – they are the centerpiece of an ecosystem. Their treatment of each element affects their risk exposure, their profitability, and their ability to succeed in the real world.
In the face of this reality, more companies are being transparent about the Environmental, Social, and Governance issues that are material to their business. Reporting on these factors is a new science and art; data, accountability, and communications are at the heart of it all.
Climate is of course front and center this week. As wildfires and extreme storms decimate communities from coast to coast, companies are feeling the pain. Climate change has a direct impact on employees, supply chains, manufacturing, energy, access to water, and other business-critical factors. Companies that consider environmental realities in their operations are better positioned for the changing world. Those that don’t invite risk.
How should companies capture and convey their strategy on this front?
Our new Guide to Sustainability and ESG Reporting provides a roadmap for those that understand sustainability is an integral part of their business strategy and are ready for a new level of transparency. We walk through the steps to a successful reporting program, with input from our friends at KKS Advisors on identifying key issues, setting goals, and reporting on ESG progress.
Please contact us with questions about ESG, and download our Guide to Sustainability and ESG Reporting.
