In part 1 of this 4-part blog series, we will expand on the Executive Summary – Defining ESG Goals and take a closer look at the impact C-Suite executives have when defining ESG Goals and what really matters to them.
A CEO’s Perspective – Turning sustainability ambitions into tangible business impact.
As the head of a company, CEOs have the incredibly difficult job of ensuring the happiness of their 3 key stakeholders (Customers, Employees and Shareholders). For every decision they make or delegate, there is a direct impact to their stakeholders. Defining what ESG goals to focus on is no exception.
As mentioned in the previously linked Executive Summary – there are three areas of ESG: Environmental, Social and Governance – A CEO must consider all aspects, unlike other c-suite executives, who may choose to focus on an area related to their role. Therefore, a CEO has the daunting challenge of selecting ESG goals that turn sustainability ambitions into a tangible business impact.
6 Common Business Impact Drivers.
The first step in this decision is to outline what you’re trying to gain and then work backwards. 6 common objectives that CEOs look to achieve include:
- Being more sustainable in order to help attract more outside investment and to help open the business up to bigger deals.
- Leverage sustainability as an opportunity to grow margins through new business models.
- Increase competitiveness and build strategic advantage with the latest sustainability innovations ahead of the competition.
- Cost savings and waste reduction enhance operational efficiency.
- Keeping up with sustainability regulations and remaining compliant. Protect margins and revenue streams through consistent compliance as requirements evolve.
- Demonstrate positive societal impact through transparent reporting and build company brand (important for customers, employees, shareholders and corporate governance).
Ultimately for many CEOs the ESG goals that truly matter is those that promote long-term value creation, enhance brand reputation, and contribute to a more sustainable future. It’s crucial to remember that investment in ESG is not a one-time thing, the need to continuously improve, review your strategy and adapt are key to succeeding.
To find out more about how IFS Cloud can support your ESG goals speak to one of our experts now.
