Climate crisis, resource scarcity, demographic change, inequality, rapid technological development… Our world is changing fast and in dramatic ways. These changes affect us all, individually and collectively.
They also offer a unique opportunity to learn from our mistakes and do things better.
We’re reaching a tipping point for the environment and for society. A point where positive changes can transform our future. Where companies and organisations can reconfigure their strategy and operations to secure their profitability, remain competitive AND protect our world and be sustainable in the future.
Many companies are striving to do their part to mitigate environmental damage and social inequalities. But we need to do better. To work harder and faster to transform business and our world. That means:
creating long-term value through a comprehensive focus on environmental, social and governance (ESG) factors,
being ready to comply with ESG regulations, and even go beyond compliance,
being ready to compete in an ESG-focused market.
It’s time for businesses to answer two key questions:
how can we ensure that our business remains resilient through times of constant change?
and how can we build a purpose-led business that creates positive environmental, social and governance impact?
Every business should understand the issues and engage with internal and external stakeholders to define their response to each of these questions — and increasingly will be required to do so. In practical terms, you need to nail down a strategy and action plan to achieve your goals.
In Europe, existing ESG-related legislation is being overhauled; the legal and regulatory framework to push for and support faster business transformation is being established.
This framework includes the EU Green Deal, the EU Taxonomy Regulation, the EU Corporate Sustainability Reporting Directive (CSRD) and much more. There are countless initiatives in place or in the pipeline – related to raw materials, energy, investments, taxation, employment practices, social responsibility, etc. – that can have a profound impact on companies’ governance, operations and reporting.
Many companies struggle to assess where they are and what needs to be done.
Take the CSRD, for example. Few companies are already CSRD-ready. It requires businesses to disclose not only the risks they face from a changing climate, but also the impacts they may cause to the climate and to society. This calls for a deeper analysis of business models.
The EU Taxonomy Regulation calls for comparability, requiring company sustainability data to be submitted in a standardised digital format.
Regulations pinpoint what needs to be done for compliance, but also help companies identify the gaps where they have opportunities to improve their business model and practices.
The regulatory framework is designed to drive change, but compliance is not the only driver for business transformation. Customers, employees, investors, suppliers and other stakeholders – not just regulators – are all calling for effective ESG policies. The sustainability-related factors which may impact your policies and practices include:
• Natural resource scarcity, • energy security, • increasing taxation and regulation around waste, carbon emissions and water consumption, • population growth and demographic change • competitor actions on sustainability, • changes in supplier/value chain relationships, • poverty and human health, • technological innovation, • …. and more.
Meeting this demand adds value to your business and helps ensure its long term resilience. As such, business transformation is a journey to embed ESG considerations into everything you do.
PwC Belgium is part of a global PwC ESG Platform, a network mobilised to embed sustainability across everything we do. It gives us unique, far-reaching resources to help us help our clients to build future-proof businesses.
Wherever you are on your path to a more sustainable and compliant business, PwC can support you every step of the way with our integrated sustainability approach that covers strategy, transformation and reporting.
Strategy: helping you make the right choices for a sustainable future.
Transformation: building ESG aspects into everyday operations.
Reporting/audit/assurance/tax: supporting you to define and implement the right non-financial KPIs.
ESG Integrated Climate Solution for net-zero strategy and transformation, climate risk and resilience
PwC Total Impact Measurement and Management (TIMM), e.g. prosperity, technology innovation and disruption, etc.
Sustainable Value Transition and Valuation: identifying risks and opportunities across the value chain
Support in integrating ESG goals into corporate, investment and tax strategies
ESG Integrated Reporting Solution to transform the reporting function into a tool to meet sustainability ambitions, manage risk, create stakeholder and maintain regulatory compliance.
ESG Integrated Due Diligence using our global ESG assessment approach
KPI embedding, ESG reporting, ESG assurance readiness and ESG assurance
Market and competitor analyses, workshops and training, etc.