Realizing Sustainability Advantage
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Sustainability is critical to the future of our world
. . . and essential to long-term business success.
Sustainability is essential to business success, focusing on how a company creates long-term value and impacts the world.
In 1987, the United Nations defined sustainability as “meeting the needs of the present without compromising the ability of future generations to meet their own needs.” In 2015, they announced The Sustainable Development Goals as a blueprint to achieve a better and more sustainable future for all . . . addressing the global challenges we face, including those related to poverty, inequality, climate change, environmental degradation, peace and justice. Sustainable development requires an integrated approach that takes into consideration environmental concerns along with economic development.
The goals have value not only for governments but also for businesses. They provide a roadmap for a business opportunity: for businesses to apply, show their contribution, and manifest the company’s purpose.
We help businesses and private equity firms realise ‘Sustainability Advantage’ in their businesses, investments and corporate transactions . . . from strategy, through assessment and implementation, to reporting:
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Strategy: Starting with the building blocks of vision, mission and values that shape corporate culture and direction. That underpin prioritised actions to realise business goals / opportunities and to manage risks.
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Assessment: Assessing materiality, to identify the issues that matter most to the company and its stakeholders . . . which are united into a framework with clear programmes, targets and KPIs for each aspect.
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Implementation: Requiring the engagement of employees and putting in place the processes / systems of governance, external feedback and regular review.
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Reporting: Robust reporting that meets recognised best practice standards, engages and inspires stakeholders and takes account of ESG Rating requirements. Providing comparable, verified information on business and sustainability performance.
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The new era of corporate sustainability reporting
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In November 2022, the European Union Council gave its final approval to the Corporate Sustainability Reporting Directive (CSRD) and first draft European Sustainability Reporting Standards (ESRS). With these measures, the EU aims to accelerate the transition to a sustainable economy.
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Under CSRD regulation, companies will soon be required to publish detailed information on sustainability matters. This will increase a company’s accountability for its impacts on the environment and society.
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CSRD brings sustainability reporting to the same level as financial reporting for the first time ever. Providing financial institutions with comparable, verified information on sustainability performance . . . including how companies are responding to macroeconomic trends, how they identify ESG risks and opportunities, and how they are positioning themselves for long-term success.
Practical. Insightful. Impactful
. . . and required by law
CSRD will apply to all companies with (approx. 50,000 companies in European Economic Area):
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Over 250 employees
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More than 40€ million in annual revenue
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More than 20€ million in total assets
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Publicly-listed equities with more than 10 employees or 20€ million in revenue
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International and non-EU companies with more than 150€ million annual revenue within the EU
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Any EU company that meets the criteria is required to file an annual report using the CSRD's forthcoming sustainability taxonomy, on how sustainability influences their business, as well as the company's impact on people and the environment.
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CSRD also requires mandatory assurance by an independent assurance service provider against sustainability reporting standards. This is to make sure information is accurate and reliable.
