Meeting evolving sustainability challenges
John Martin MBA,Exec Lead,CA,Post Grad Risk Mgt, B Com
Visionary Financial Services Leader | Expertise in M&A, Sustainable / ESG Investment, Regulatory Compliance | 30+ Years of Transformative Impact | Passionate About Driving Growth and Creating Lasting Value
ESG has been moving up the business agenda in recent years, with well publicised COP conferences, new regulations, government targets and evolving consumer behaviours being key drivers of a sustainability oriented cultural shift.
To better understand how business leaders are thinking about ESG and sustainability, multiple surveys about sustainability strategies have been conducted.
The results highlighted that while some companies are well advanced on their sustainability journey, many are yet to fully embrace issues relevant to their business and value chain.?
While the positive trend continues, many organisations still have a long way to go to embed sustainability issues into their operations.
In addition, for those already engaged with ESG issues, the survey indicated that a quarter are experiencing difficulties implementing ESG strategies.
Failing to recognise the value of robust policies or being unable to overcome planning hurdles could mean companies fail to exploit opportunities or fall behind in vital areas.
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Having a strong ESG strategy is becoming increasingly essential - to the point where it can effectively determine who will do business with you.
The shifting focus of ESG regulations includes the European Union’s?Corporate Sustainability Reporting Directive?CSRD, which will apply to all ‘large’ EU companies including EU subsidiaries of a UK parent.
Given the many areas that ESG touches on, it is directly connected to how attractive a business is when raising finance.
Banks and investors want to know that ESG risks have been addressed or opportunities capitalised on.
So even if a company does not think it is a priority now, it may be setting itself up for challenges later if it does not put in place an effective ESG strategy now.
Understanding your ESG journey and how it compares to the wider market is essential to making sure your business is the one that attracts investors, talent, and market share – while avoiding costs imposed by tax authorities or reputational damage in the face of stakeholders and customers.