On the agenda: Sustainability.

Deloitte LLP's point of view on the theme of Sustainability, which today means: high performance in environmental, social and financial areas.

Interesting insights on the crucial issue of sustainability come from an article published by well known international consultancy and services firm Deloitte LLP; the article focuses on the relationship between sustainability initiatives and financial transformations. Today, the imperative is to: be sustainable and be an organization capable of integrating environmental and social performance with financial results. The finance function has assumed a central role in the "support of sustainability” a role becoming ever more important.

Finance, historically, was called upon to provide analytical support to the overall assessment and evaluation of initiatives to promote sustainability, and now it increasingly has the task of measuring and reporting about the impact on the environment and society, as well as on financial performance.
Sustainability, then, becomes a catalyst for transformation initiatives aimed at supporting business growth, improving efficiency and managing risk and compliance.

Deloitte, through its work with international financial organizations, identified six key-areas in which sustainability initiatives can trigger financial transformations, and the ways in which they can create opportunities to improve reporting, transparency and performance in business, while mitigating business risk. These are:

  • Enterprise Value
  • Stakeholders Returns
  • Impact of Greenhouse Gases and Waste
  • Managing Business Risk
  • Reporting
  • Tax and Regulatory

Among these six pro-sustainability levers capable of impacting financial changes, two in particular, reporting and tax/ regulatory, leapt to the  top of many a CFO's agenda.