In a world facing climate change, soaring greenhouse gas emissions, reducing biodiversity and increasing income disparity, corporates are
being asked some tough questions.
Today, business success depends
on the ability to effectively navigate through this
changing economic, environmental and social landscape.
The relationship of business with environment and society is undergoing a fundamental shift. World over businesses are feeling the heat from consumers, investors, policy makers, financial institutions, non-governmental organisations, media and activists.
The demand for transparency and accountability is increasing every day. Stakeholders need to know how a business is impacting the environment and whether it is an asset or a liability for the society
it operates in. Non-proactive businesses not only run the risk of economic losses, but face an imminent threat of losing their societal license to operate.
Corporate sustainability can directly impact 'cost of capital'. The issue of margin above risk-free rate or pricing - or even in extreme cases, not making funds available - is already being related to a company's sustainability rating. Whether measured in the premium over benchmark that a company is required to pay for a loan or
the corporate bond spread that applies; a company's corporate sustainability rating has become a measurable input into the
cost equation.
In a nutshell, environmental limitations and societal expectations have ushered in new risks and new avenues for revenue. Progressive organisations across the world are
The Shanghai Stock Exchange, one of many stock exchanges that recommend reporting, now sees 700 sustainability reports every year.
embracing sustainability, periodically reporting their performance and implementing smart, sustainable strategies to inject resilience in their brands and capture market share.
