90% See ESG (Environmental, Social, and Corporate Governance) Reporting as a Future Advantage: The Challenge is How

Dear readers,

It's undeniable. A whopping 90% of industry leaders are looking towards the horizon and seeing the same thing: the ESG wave. But while many acknowledge the power of Environmental, Social, and Corporate Governance reporting, the real challenge lies ahead. How do we transform this awareness into a tangible, competitive edge? Dive in with us as we unpack the strategies, pitfalls, and innovations that can make ESG your organization's secret weapon.

?

1. In a study by Workiva and Ascend2 , 90% of global businesses recognize the imminent necessity of a robust ESG (Environmental, Social, and Corporate Governance) program for competitive leverage. Yet, 74% foresee challenges with international regulations, and a gap emerges between executives (62%) and managers (32%) in confidence over current ESG reporting diligence. As 97% highlight the critical role of technology in shaping ESG strategies, the question arises: how can ESG be transformed into a genuine competitive edge??
2. Companies are increasingly recognizing sustainability as a pivotal choice, either as a compliance necessity or as a competitive advantage, especially given the keen attention from stakeholders such as consumers and investors. This article from Stephan M. Liozu, Ph.D. underscores the integral role of pricing teams in enhancing sustainability strategies. Firstly, it's crucial to engage teams that are directly related to customer and market strategies in sustainability dialogues. Secondly, sustainability initiatives should go beyond just focusing on technology and materials; they need to clearly elucidate the benefits to customers. Thirdly, existing tools like segmentation and value-based selling can be adeptly adapted to the realm of sustainability. Furthermore, pricing teams are positioned to champion the new metric, Return on Sustainability Investments (ROSI), leveraging models like Total Cost of Ownership (TCO) and Economic Value Estimation (EVE). Lastly, a concerted effort is needed to establish a dedicated monetization and pricing workstream, urging collaboration with top executives to emphasize the significance of monetization and pricing in sustainability endeavors.?
3. Before the coronavirus pandemic, 美国纽约大学 ’s Stern Center and Tensie Whelan introduced the Return on Sustainability Investment (ROSI) framework, a method that monetizes the benefits of sustainability. This approach emphasizes that vague business advantages can be quantified. By dissecting business drivers and leveraging NYU's research, companies can better understand sustainability's financial impact. For instance, sustainability-marketed products, though only 16.6% of market revenue, drove 50.1% of growth from 2013 to 2018. This underscores the economic value of sustainability initiatives.?
4. In the latest episode of the PricingForThePlanet Podcast, we're joined by Paola Andrea Valencia, CPP , VP Pricing at 施耐德电气 . Together, we navigate the intricate landscape of pricing sustainability. We discuss the art of monetizing eco-friendly initiatives, the significance of gauging customer willingness to pay, and Schneider Electric's commendable strides in sustainability. The conversation also touches on the debate surrounding premium pricing for sustainable products and how pricing strategies are evolving in the face of global eco-conscious movements.?Scroll down to get more detailed insights as well as to find the link to these articles and reports.

The ESG Imperative: Navigating Challenges and Harnessing Advantage

In a comprehensive study spearheaded by Workiva in partnership with Ascend2, the intricate landscape of ESG (Environmental, Social, and Corporate Governance) reporting emerges as a prevailing concern for businesses globally. As these organizations navigate the multifaceted realm of ESG, there’s an undeniable consensus: a staggering 90% believe that, in the imminent future, a fortified ESG program will not just be advantageous, but essential for competitive distinction.

?

However, this forward-looking optimism is counterbalanced by present-day challenges. A significant 74% of respondents anticipate the looming need to align with multiple global regulations, underscoring the escalating regulatory focus on ESG imperatives. Additionally, there's a palpable disparity within companies: while a confident 62% of executives vouch for their organization’s diligence in ESG reporting, akin to their financial reporting standards, only 32% of managerial personnel echo this sentiment.

?

The pivotal role of technology in this narrative is unambiguous. An overwhelming 97% of participants acknowledge the criticality of technology and data in shaping and refining their imminent ESG strategies. As global businesses endeavor to demystify ESG complexities, it's evident that those adeptly leveraging technology, coupled with a coherent organizational vision, are poised to pioneer. Yet, a pressing query remains: how can these organizations effectively transform ESG into a tangible competitive advantage?

Access the full report

Five Ways Pricing Teams Can Shape Sustainability Strategies (and make them a competitive advantage)

Sustainability is becoming a primary concern for companies, especially with the increasing regulations and requirements. Companies face a choice: adopt sustainability for mere compliance or use it as a competitive advantage. This decision is crucial, given the attention from consumers, investors, shareholders, and regulators. For those companies that see sustainability as a strategic differentiator, they require support from all go-to-market teams, including the pricing team.

?

This article highlights five ways pricing teams can influence sustainability strategies:

1. Engage Other Teams: Ensure that sustainability discussions involve other teams, especially those related to customer implications and go-to-market strategies.
2. Customer-Centric Strategy: While many sustainability programs focus on technology and materials, the real question is how these initiatives benefit customers and contribute to their sustainability goals.
3. Leverage Monetization and Pricing Tools: Tools like segmentation, pricing research, and value-based selling can be adapted to sustainability topics and used to make sustainability a competitive advantage.
4. Lead ROSI Calculation: Return on Sustainability Investments (ROSI) is a new metric that justifies sustainability programs. Pricing teams can help in calculating ROSI for customers using Total Cost of Ownership (TCO) and Economic Value Estimation (EVE) models.
5. Create a Monetization and Pricing Workstream: This involves collaborating with key stakeholders like the Chief Sustainability Officer, CMO, and CFO to emphasize the importance of monetization and pricing in sustainability strategies.

?

Read the full article

ROSI: the secret weapon to monetize sustainability

Before the onset of the coronavirus pandemic, NYU’s Stern Center for Sustainable Business and Tensie Whelan highlighted the Return on Sustainability Investment (ROSI) framework in its annual practice forum. The ROSI approach is a five-step method that translates the qualitative benefits of sustainability efforts into monetary terms.

The philosophy behind ROSI is that qualitative business advantages, which might seem vague initially, can be distinctly quantified and monetized. To achieve this, businesses must analyze drivers in detail, breaking down areas into specific actions that can either mitigate risks or seize opportunities. Companies using the ROSI framework benefit from NYU’s research capabilities, helping them quantify qualitative factors.

An example from the consumer packaged-goods industry showed that products marketed for sustainability, while only accounting for 16.6% of the market revenue, contributed to 50.1% of market growth from 2013 to 2018.

The key takeaway is that sustainability can be monetized, but it requires both acknowledging the importance of economics and realizing that sustainability intangibles have monetary value.

Learn more about ROSI

The PricingForThePlanet Podcast - Pricing as an Enabler of Sustainability

In this episode of the PricingForThePlanet Podcast, we're joined by Paola Andrea Valencia, CPP , VP Pricing at Schneider Electric. Together, we navigate the intricate landscape of pricing sustainability. We discuss the art of monetizing eco-friendly initiatives, the significance of gauging customer willingness to pay, and Schneider Electric's commendable strides in sustainability. The conversation also touches on the debate surrounding premium pricing for sustainable products and how pricing strategies are evolving in the face of global eco-conscious movements.

Dive in with us to explore the fascinating crossroads of pricing and sustainability.

Listen to the podcast:

-Spotify: https://open.spotify.com/show/6WBSg8k4seYpl13jgBFn0F

-Apple Podcast: https://podcasts.apple.com/fr/podcast/the-pricing-for-the-planet-podcast/id1702723132?l=en-GB

-YouTube: https://www.youtube.com/watch?v=pu_FzO871qs&t=29s

-Amazon Music: https://music.amazon.fr/podcasts/85f84fc5-5705-4cf6-9150-77c134b3e799/the-pricing-for-the-planet-podcast

We are Pending B Corp!!!

PricingForThePlanet is now Pending B Corp! ! But what does "Pending B Corp" mean? Becoming a Certified B Corporation means a business meets the highest standards of verified social and environmental performance, public transparency, and legal accountability to balance profit and purpose. The "Pending" status is designed for newer companies that are committed to these values but need time to meet all the certification requirements. Being a Pending B Corp signals our dedication to not just be the best in the world, but the best FOR the world. It's a testament to our commitment to creating a positive impact on society and the environment, beyond just profit. Thank you for being a part of our journey. We're excited about the road ahead and the positive change we aim to create together. Let's make a difference!

Your free access to PrimoGPT - Your Pricing and Monetization chatGPT

Discover how GenAI can be leveraged to accelerate sustainability. PrimoGPT, with its exceptional expertise in pricing and monetization, has been trained to incorporate sustainability aspects where appropriate, reflecting our core values at PricingForThePlanet.

?

Start exploring with PrimoGPT today!

BETA VERSION - Password protected

Username: primoGPT

Password: PricingForThePl@net? ?

Test PrimoGPT

Until next time, stay inspired!

Best wishes,

Stephan and Fabien

Not yet subscriber?

Be part of the PricingForThePlanet twice-monthly newsletter (Bi-weekly Digest) and spread the word! Don't hesitate to forward this email to your nearest and dearest to amplify our cause.

Join now