A recent survey conducted by BDO Belgium and Mercuri Urval illustrates stakeholder’s interest and dedication to the transition to sustainability. The survey reports that stakeholders have been found to be the main drivers behind the transition, with companies reporting that they have already received sustainability-related questions from clients (78%), employees and future talent (58%), and public authorities/ governments (52%). This illustrates how integral sustainability concerns have become for businesses and highlights the opportunity companies have to take a proactive approach and tap into the potential of sustainability to grow their capital and ensure the adaptability of their organisation.
Some of the key obstacles found to be facing businesses in the transition to sustainability are:
In order to address these concerns, businesses must:
Embed sustainability into leadership and company business strategy
By ensuring ESG topics are fully integrated into the company’s core operations and decision-making process, companies can identify and manage risks, seize opportunities, and create long-term value for all stakeholders. In order to determine the relevant ESG targets for each individual company it is important to conduct a Double Materiality Assessment, whereby the financial effect on the company as a result of sustainability risks and opportunities is measured, as well as the impact of the company on society and the environment. It is also important for companies to begin mapping their value chain now to ensure their business partners are meeting their environmental and social obligations and to identify potential risks and violations.
Invest in leadership commitments
The importance of leadership, the board, and CEOs cannot be understated in this transition as leadership plays a vital role in defining a company’s strategy and shaping how companies adopt to sustainability challenges. Companies must take steps to enhance the ESG capabilities of their team by providing training to their board members and management on sustainability topics in order to allow them to fully understand their obligations and their role in helping the company reach targets.
Encourage employee engagement and empowerment
Employees play a critical role in driving sustainability within organisations. Leaders should empower employees by offering training programmes which inform them about the company’s approach to sustainability and equip them with the knowledge and skills needed to actively contribute to the company’s success. By encouraging employees to actively participate in sustainability initiatives, businesses cultivate an organisational culture that values environmental responsibility and encourages innovation, allowing them to retain employees and attract top talent.
