Protecting value
Companies can implement new strategies and common practices to safeguard their business value against risks associated with ESG factors, such as human rights, cybersecurity, extreme weather and its impact on the business value chain. This is an increasingly important consideration as investors, customers, and regulators place greater emphasis on sustainable and responsible business practices to protect value.
Creating value
Sustainability creates value by unearthing opportunities to drive innovation and improve financial performance. Companies may seek new ways to reduce their environmental impact, through the development or adoption of new products, services, and emerging processes. While innovations benefit the environment, they also generate new sources of revenue, drive efficiencies, and improve performance, leading to greater profit.
Harnessing regulations
As companies comply with and report on regulatory frameworks, they can derive substantial value as an unexpected by-product. By planning strategically, increasing operational efficiency, improving risk management, ensuring compliance, engaging stakeholders, attracting investment, benchmarking performance, and enhancing their reputation, companies can position themselves for long-term success in a rapidly evolving business landscape that increasingly prioritizes sustainability.