At UK for Good – as I’m sure you’ve noticed!– we wax lyrical about the ‘bottom line’ benefits of introducing sustainability practices and measures into your business.
Not only is it better for people and planet, practising ‘better business’ can have a noticeable impact on profit, a benefit that hasn’t gone unnoticed by some of the biggest players on the market.
A informative insight into the changing landscape of business, PwC’s think piece – ‘Linking executive pay to ESG goals’ – outlines some new and innovative ways big business is rewarding better business thinking:
“Sustainability achievements are now routinely acknowledged alongside traditional key performance indicators (KPIs). This may in part be to burnish reputations, but there’s increasing evidence in the academic literature that sustainability has a positive impact on the bottom line and shareholder value.”
As the world rapidly awakens and adapts to the threat of climate change – and the need to incorporate sustainability into our day-to-day lives becomes clear – corporates are following suit (if you’ll pardon the pun!)
Here are just a couple of examples (quotes taken verbatim from PwC):
2019
181 CEOs of US-based public companies signed the Business Roundtable’s revised Statement on the Purpose of a Corporation, vowing to “protect the environment”, “foster diversity and inclusion” and “commit to transparency and effective engagement with shareholders”
2021
The UK government made “the detailed reporting of climate risk mandatory for most publicly traded companies and financial firms”
Corporates are also facing significant pressure from shareholders and investors demanding “company disclosures on climate-related risks, board and leadership diversity, and political donations”, so it makes sense that we’re seeing a big shift towards transparent reporting, not to mention climate-focused operations and initiatives.
With the – relatively new – introduction of incentivising sustainability achievements within organisations, fingers crossed we can expect more of the same.
Read how some of these big business players – including Apple, McDonalds and Unilever – are incentivising ESG-based achievements – and what to keep in mind if you’re incorporating something similar – in PwC’s ‘Linking executive pay to ESG goals’.
But this isn’t just for big companies. Measuring your impact on your people and the environment is as, if not more important, than the growth of your P&L account.