BDO guides clients along their sustainability journey - a practical approach for value creation and material risk management
BDO's Guide to activating your sustainability journey publication helps set out the fundamental market drivers and necessary steps an organisation needs to know to activate their sustainability journey.
‘Sustainability’ presents a challenge due to its breadth and complexity. According to the Oxford English dictionary, the definition of Sustainability is ‘the ability for something to be maintained at a certain rate or level’ and /or ‘avoidance of the depletion of natural resources in order to manage ecological balance’. Companies use this term as a phrase to focus their efforts on ‘doing better’.
The vernacular, terminology and even the meaning of sustainability has changed over time. For business we have seen it evolve from ‘corporate social responsibility’ which generally refers to the practices and policies that a company adopts to promote positive impact, to ESG (Environmental, Social, Governance) which is a metric-based reporting process that promotes the ongoing process of assessing, monitoring and improvement.
Sustainability parameters set the tone for all businesses
Sustainability and ESG are having huge impacts on the current business landscape. In addition to growing government intervention, business and institutions are also taking a role in transforming unsustainable production and consumption patterns.
It is imperative that we rethink how our businesses operate and behave if we are to ensure our systems and foundations are resilient and fit for a sustainable future.
We believe that all elements of a business can be viewed through a sustainability lens – and for a business to create resilience and long-term value, a sustainable business model should be adopted. Right now, it is not a question of whether a company ‘should’ do anything - because doing nothing today is not an option - the question is how companies will respond. We also believe it is the right thing to do.
Covid-19 and extreme climate events remind us how interconnected our economies, environment and societies are, and that our individual success is largely driven by societal success. We believe, as individuals and employees we have a role to play in promoting responsible and sustainable business.
In addition to being the right thing to do, a variety of research and studies show that sustainability creates value for businesses, suggesting sustainability improves financial performance, builds customer loyalty and attracts and engages employees. This indicates that how businesses behave, how they engage their stakeholders and their overall purpose is driving value across the organisation.
By rethinking our businesses through a sustainability lens, we have the opportunity to unlock value and create positive change. At BDO, we aim to inspire, educate and lead an unstoppable movement for sustainable business practice in our markets.
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