Strategy for Sustainable Business
What is a Strategy for Sustainable Business?
A sustainability strategy is the vision and focus that underpins a company’s approach to sustainability.
We work alongside our clients, helping them to understand their history, identifying their purpose and creating bespoke approaches that reflect their motivations and internal aspirations for a sustainable business.
Our Strategy for a Sustainable Business is made up of four key stages: Materiality, Legislative, Peer and Strategy Reviews.
- 1. Materiality Review: The first step is to perform a materiality review, which allows you to identify the issues that are of most significance to your business and your stakeholders. This entails engaging with key internal and external stakeholders to get to the heart of the issues which most reflect the organisation’s economic, environmental and social impacts.
- 2. Legislative Review: The legislative review complements the materiality review by determining the areas of greatest legislative risk to your operations now, and in the future.
- 3. Peer Review: A peer review looks at your performance against a comprehensive set of sustainability criteria in comparison to your peers, to identify where you are performing well, and the areas where you need to improve.
- 4. Strategy Review: Bringing together the three earlier stages, our Strategy Review recommends a short, medium and long-term vision for the company, complete with key focus areas and performance indicators to monitor actions and track performance. We look at where you should be focusing from a strategic perspective, as and how you can set yourself apart from your peers from a reputational perspective.
Why a Strategy for Sustainable Business?
A clear, inspiring vision and coherent strategy are the cornerstones of every successful sustainability programme. Without it, companies risk neglecting the issues that are of most material importance to them, while blindly replicating the actions of their peers.
How a Sustainability Strategy benefits you?
There are many reasons why real estate professionals are investing in Sustainable Strategies. Creating sustainable business strategies increases the ability to attract and retain the very best talent, it increases the potential to grow profit margins, as well as mitigating against legislative risks.
- 1. Attracting and retaining talent. According to a Deloitte survey, 87% of Millennials view a successful business as going beyond financial metrics to focus on issues such as environmental and social impact. There is also increasing evidence that millennials are happy to take a lower salary for a position that they value. Providing your team with a platform where sustainability is embedded into business activities demonstrates a purpose-led organization that’s important to future leaders who desire a socially conscious career.
- 2. Boosting profits. It is well-established that sustainability can improve efficiencies in natural resources, energy and water, which comes with clear cost savings. However, a well-crafted sustainability strategy can also increase brand reputation, improve risk management and lead to greater innovation. Consequently, companies with high ratings in environmental, social, and governance factors outperform the market in medium and long range terms. An investment of $1 at the beginning of 1993 in a value-weighted portfolio of high-sustainability companies would have grown to $22.60 by the end of 2010, compared to $15.40 for the portfolio of low-sustainability companies.
- 3. Mitigating against legislative risk: The national commitments made at the Paris Agreement must be revised for us to have any chance of meeting our 2-degree target. This means that there is currently an enormous gap in legislative action which must be filled over the next decade. Establishing a sustainability strategy helps to ensure that your company stays ahead of the legislative curve.
How can Longevity Partners help you?
Through our four stage approach to Strategy for a Sustainable Business, Longevity Partners can help you identify the most pertinent issues to your company and provide a framework through which you can manage these risks and take advantage of opportunities.
We use this approach to develop a long-term sustainability journey that realises a shared future vision for your business.