How to Balance Corporate Sustainability and Financial Stability

In this age where corporate sustainability has been moving to the core of the business realm and several macro trends shift the nature of global economic activity, organizations and managers must recognize the need to include sustainability and environmental engagement (disclosure for instance) in their decision-making process.

As companies move to this relatively new and dynamic business paradigm, management’s role becomes more crucial in finding the balance between corporate sustainability and financial stability—in other words: how can corporate leaders and managers drive financial benefits from sustainability programs?

Transparency is Integrity at Work

Curbing the impacts of climate change and protecting the environment in itself is a great challenge. But the irony of this is that more and more companies and organizations have started to focus more on sustainability efforts and have as a result reaped profits at the same time.

In a report recently released by CDP and Sustainable Insight Capital Management, superior transparency on climate engagement is associated with higher financial performance. The study — along with the CDP’s annual carbon performance and disclosure ratings for the S&P 500 — was released last month at an event I attended on the floor of the NY Stock Exchange. These two complementary reports showed that CDP leaders that incorporate environmental factors into their business strategies are mitigating climate related risks, finding opportunities to strengthen their businesses and delivering higher profitability than their industry peers. 

Carbon disclosure reports can significantly and effectively help align all levels of the organization towards a common goal. It can boost the confidence of both internal and external stakeholders of your organization. Investors will be able to positively see the long-term benefits for climate resilient infrastructures, from renewable energy to energy efficiency that involves high-capital expenditures that create secure and predictable long-term assets. Energy management assessments are the first step for smart energy management. This is not only a way of emphasizing the company’s commitment to its  sustainability program but also a means to effectively reduce cost that will contribute to profits in the process.

Moreover, when climate change reports are in place, you can expect managers and even staff to be challenged to innovate products, operations and current business practices. It encourages collaboration with members of the organization towards a corporate social responsibility (CSR) that is focused on saving the planet— a CSR program that will be practiced at work and find its way back to employees’ homes.

In order to drive real sustainability value and strategy, firms need a sustainability consultant and sustainability and energy solutions partner, such as FCS, that provides not only sustainability and environmental management service, climate change solutions, and comprehensive CSR carbon management and reporting tools for regulators, employees, and the other stakeholders of your company. FCS also offers integrated consulting, software, and program management services with comprehensive back office information processing – creating integrated solutions to improve firms’ financial and environmental performance. Click on the link below to request a consultation with our corporate sustainability experts today.