The emerging consensus among companies that long-term value is most effectively created by serving the interests of all stakeholders as the interrelation of economic, environmental and social factors is increasingly material to long‑term enterprise value creation. Investors and stakeholders now expect companies to manage and report on non‑financial issues, risks and opportunities – with the same discipline and rigour as financial information – including relevant ESG (Environmental, Social, Governance) metrics.
Via these sustainability frameworks and reporting – and integrating them into governance, business strategy and performance management – a company demonstrates to its shareholders and stakeholders that it diligently weighs all pertinent risks and opportunities in running its business. Additionally, those corporations that align their goals to the long‑term goals of society, as articulated in the SDGs, are the most likely to create long‑term sustainable value, while driving positive outcomes for business, the economy, society and the planet. This is the true definition and intent of stakeholder capitalism and ESG and is encapsulated in the scope of our Sustainability Risk Manager (SRM™) certification program.