Learn more about how sustainability and companies' evolving ESG practices demonstrate their ability to continue to create value.
This article shines a spotlight on sustainability, the broad framework under which the concepts of environmental, social, and governance (ESG) practices of a company are captured, and how such practices demonstrate companies’ ability to continue creating value.
ESG issues are starting to form the core pillar over which many organizations are increasingly structuring their business, thereby impacting every key function within the organization, from the front-end to the back-end of the value chain, including: product/service development, customer engagement, marketing, recruitment, hiring, promotions, and the structuring of day-to-day operations (i.e., performance targets, travel policy, remote work, etc.).
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There is now a broad consensus arising on the need for organizations to have solid and actionable plans to not only report on, but to address sustainability issues concerning the environment, social equity issues, and good corporate governance practices.
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Change is coming from the top and is being driven through all parts of the business. ESG-based investment decisions are increasingly common among some of the largest institutional investors.
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The growing emphasis on ESG is motivating companies to take a holistic look at the entire organization and develop an enterprise-wide program that integrates the efforts across every function within the organization.
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Some companies are already thinking about ESG as a pillar of who they are, but also as a value driver in the big picture sense.
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While the journey is long, the key is to take that first step and begin assessing where the company is today and where it might head tomorrow.
Sustainability and the Evolving Value Chain
Value chains continue to evolve to meet the ever-changing needs of customers, the role of digital transformation across the organization, and the overall impacts of the rapidly changing geopolitical and tax/regulatory framework. This article focuses on sustainability and how companies' evolving ESG practices demonstrate their ability to continue to create value.
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