Is Sustainability a Goldmine?

Corporate sustainability, and the reporting that comes along with it, can be a goldmine of information for businesses. Many companies tend to overlook the information that is available in their own reports.

According to a new report by Deloitte and Touche, executives could be exposing their company to long-term risks if they do not closely evaluate or disclose the information that they have collected.

The report, “The Disclosure of Long-Term Business Value: What Matters” contends that “companies of all sizes should consider factors such as resource efficiency, business-model efficiency, the potential for innovation, brand strength and corporate culture as part of strategic decision making,” explains GreenBiz.com.

GreenBiz.com’s Heather Clancy utilizes the example of manufacturing. If the company opens a new plant they should look more at the long-term outlook, such as the outlook for water supplies.

Eric Hespenheide and Dinah Koehler, the authors of the study, note that CFOs have a unique advantage points in this situation. They have the ability to consider long-term results for a wide-range of stakeholders. CFOs can reach the customers, suppliers, consumers, employees, non-governmental organizations and communities that contribute to the overall success of an organization.

We’ve discussed how sustainability is important to the consumers. The Deloitte and Touche study realizes this as well. Two of their guidelines include the ripple effect of the supply chain and the ability to question whether your organization has a social impact.

By tracking information other than financials, including greenhouse gas emissions, waste-management policies, water consumption and corporate social responsibility, companies have the ability to take on a whole new dimension in the ever-changing business world.

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