Companies are already beginning to be required not only to calculate and reduce their carbon footprint until they achieve climate neutrality, but also to consciously approach their impact on biodiversity, the availability of natural resources, and their progress toward implementing the concept of a circular economy.
What is sustainability management, and why is it so important?
Sustainability is a strategic approach to managing and conducting business that integrates economic, social and environmental aspects to ensure long-term growth and stability. In practice, it means creating value for stakeholders while minimizing negative environmental impact and supporting community development. Companies that pursue a sustainability strategy strive for sustainable use of resources, responsible supply chain management and innovation that promotes both profit and social well-being.
Changes in companies’ business models to include environmental, social and governance (ESG) factors are driven by a number of market trends, such as:
These factors are impacting the world of politics and the economy. Analyses by institutions such as the United Nations and the World Economic Forum indicate the permanence of the trend toward broader consideration of sustainability issues. There is growing pressure to take an integral look at this subject, as symbolized for example by the UN Sustainable Development Goals.
Challenges for companies in sustainability management
These issues will pose a challenge for businesses, especially those just starting to learn about sustainability. In recent years, they have had to face problems such as the impact of the Covid-19 pandemic, broken supply chains, volatile (and high) energy prices, and inflation, including rising costs of materials and personnel.
The scale of the expected changes—in legislation, financial streams, and consumer expectations—will be enormous in the coming years. The most important challenges include:
The green transition is unprecedented. People knowledgeable about translating it from theory into business practice will become extremely desirable on the labour market. Despite the growing range of training offered in this area, and new fields of study at universities, the demand for employees with sustainability competences may exceed the supply in the coming years.
What can your company gain from Sustainability as a Service?
Sustainability as a Service offers tailor-made expert support on demand, with a standard term of 12 months. It provides access to the knowledge of Sustainability Managers on market trends, current and planned regulations, and sources of financing. Through this format, the client receives the support of a person who knows their needs and the specifics of their operating market. As the service is offered in a set of modules, the level of support can be adjusted to the needs and financial capabilities of the company.
This service will help the company benefit from its shift towards sustainable business models by:
1 Presenting actions taken and their measurable value—including economic value.
2 Raising awareness of necessary changes in the business model (e.g. in the supply chain or among consumers).
3 Developing enticing sales messages.
Accessing a wider range of people with knowledge of energy and climate policies, the circular economy, and decarbonization strategies is an attractive alternative to employing a dedicated person within the organization, while ensuring that the company can draw on KPMG’s broad knowledge base and minimizing the risks of trying to hire the right person with the right skills. In addition to environmental aspects, KPMG staff can also provide support on other ESG pillars—social and corporate governance issues.
KPMG’s support in building sustainable growth via Sustainability as a Service
Through cooperation with KPMG in this service, the client will be assigned a dedicated virtual Sustainability Manager. This person will use the knowledge of KPMG experts (in Poland and within the international network of offices) and market analytics tools developed or purchased by KPMG, offering support in the process of changing the client’s business model.
Examples of activities carried out in this model may include:
- Identifying the baseline state and setting the company’s goals going forward.
- Developing an action plan in cooperation with stakeholders.
- Implementing the action plan.
- Completing questionnaires such as CDP or EcoVadis.
- Alignment with industry ratings.
- Sustainability training, which can also be designed specifically for the management board or supervisory board.
This list is not exhaustive. During the term of the contract, it is possible to purchase additional hours of consultations and services, for example:
- Development of an ESG strategy.
- Calculation of Scope 3 emissions.
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