Thursday, June 11, 2015

Adding Value through Sustainability

Sustainability adds value while simultaneously improving the environment and society’s well-being. It is now imperative that business leaders work towards value creation through sustainability. Investing in sustainability serves the dual purposes of strong financial performance and societal betterment. Meeting or exceeding stakeholder expectations as well as staying ahead of new regulatory regimes makes good business sense.

A number of studies have demonstrated that sustainability issues are increasingly relevant to business leaders. Those that ignore the trend do so at their own peril. Just as investors seek to integrate environmental, social and governance factors into current and future investment practices, business leaders must also be mindful of the new competitive environment.

The compelling case for social and environmental investments is growing stronger as an increasing number of stakeholders get on-board. Employing sustainability reporting is an effective way of understanding and engaging the issues.

companies that are stuck in outdated, narrow approaches to value creation are less competitive. Those that remain focused on optimizing short-term financial performance at the expense of long term positioning are at risk of being buried by the competition.

It is suicide to ignore the well-being of customers, the viability of suppliers, and the economic condition of the communities in which we operate.

An enterprise will not thrive if it depletes the natural resources that are vital to its core business activities.

Companies that pay heed to all stakeholders and are sensitive to environmental and resource issues are destined to outperform and outlast those that do not.

Related
Drivers of Green Investment Growth

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