Mihnea Jurca, Senior Manager, and Ştefan Panaitescu, manager, sustainability practice, Deloitte Romania the public debate on sustainability has increased in recent years, but for various reasons, the segment related to the sustainability strategies has remained in the second plane. In fact, if the report of sustainability has always been governed by international standards as Global Reporting Initiative (gray), Sustainability Accenting Standards Board (SASB) or, more recently, by the CSRD provisions, the sustainability strategy has been treated secondary and from this perspective, taking as a landmark some principles and standards (AA) Gray, but without benefiting from local transposition and, therefore, without any responsibility or compliance obligation. On the other hand, even where the sustainability strategy exists, there are numerous cases in which it is decoupled by the business strategy, which creates an unproductive gap between growth and transformation objectives. However, given the economic instability of the last years, as well as the concern expressed in a Recent report Deloitte of seven out of ten business leaders around the world regarding the effects of climatic changes on companies by 2027, and especially taking into account the evolutionary landscape – CSRD, EU taxonomy, EU emissions 1, 2 and 3 et al. -, Sustainability strategy becomes one of the most relevant and practical steps for companiesincreasing efficiency and resilience and transforming sustainability from an isolated theme into an organizational culture, which offers direction, clarity and motivation.
Beyond the ESS requirements. How does it start in developing a relevant sustainability strategy? The European regulations offer an indispensable framework for the reporting of sustainability, but they can and should be only a starting point in the sustainable transformation of the business and in the construction of a profile strategy. Because an effective strategy involves more than compliance. It is about establishing priorities, integrating them into the business model and building a stage plan that positively influences the impact of the environment, the market and the society and, last but not least, to improve the financial performance.Evaluation of the value chain It is the first step. It involves identifying the critical points where the company can have the highest impact, along the chain, from suppliers to the final product marketed. As an alternative, there is the possibility to build a sustainability strategy starting from the ESRS (European Sustainability Reporting Standards), but it offers a smaller perspective and fewer intervention areas.Double materiality analysis (Double Materity Analysis) is an essential calibration tool in the initial stage, leaving both the impact of the organization on the environment and society, as well as the risks and opportunities generated by external factors. Moreover, since the introduction of CSRD, the relevance of the double materiality analysis has increased, which is the basis of many information needed in reporting.Consulting stakeholdersin individual interviews or group discussions, is the next step. Because understanding the expectations of critical categories, such as employees, customers, investors and the community is essential from the strategy construction phase and will ensure their commitment throughout the following stages.Establishing as priorities of action of areas with the highest impact potentialinstead of the tendency to approach all the subjects simultaneously, it is also a principle to consider. As with sustainability reporting, a cautious, gradual approach, building a plan around the topics where the company can have real contribution, either in environmental or social or business plan, it is always preferable. In the opposite scenario, of the simultaneous action on several levels, the risks are related to resources in low impact projects, confusion among teams working with difficulties difficult to follow and reach, as well as lack of credibility, caused by the inability to deliver clear results.At the end of these receiving four steps, a roadmap It must organize the strategy in phases: short -term objectives, immediately achievable, in the medium term, ie extension projects, respectively long -term objectives – ie transformation initiatives. Sustainability strategies must be built so that the plan reflects the involvement of the company for an established period, following context analyzes, value chain and materiality. What principles make the difference in successful pursuit of a sustainability strategy?Integration of ESG principles into decision routine. Against the background of accentuated economic instability and increasing access to resources, industries and economies adapt, and anticipation power becomes a key attribute. The ESG framework offers clear action benchmarks to the objectives concerned, which is why sustainability must become part of the decision process in all its aspects, from the supply chain to investments and innovation.Reporting to market context and global tendencies. An effective strategy involves aligning the measures at the request of consumers and the evolution of technologies and should provide a complex image not only on the company situation, but also on the wider context in which the strategy was developed.Communication. Any initiative, whether it is imposed by regulations or voluntarily started, will encounter a certain degree of resistance. Clear communication, with precise goals and clear, organized steps, in achieving them facilitates the increase of confidence and commitment from the teams.Flexibility. The sustainability strategy involves the concentration of all the actions of transformation and optimization in an integrated plan, developed on the basis of the capabilities of the company and the typical industry, allocating responsible and budgets and taking into account the realities of the market and competition. This is why it remains a «living» document and requires constant updates and adjustments. In conclusion, why is a sustainability strategy appropriate? A sustainability strategy is not a response to regulations, no optional exercise, but an essential business tool, whose real value is reflected in all dimensions of the organization.
A well -built strategy guides investments, innovation and operational development to areas that generate durable impactboth financially and in the plane of reputation and on the environment. In addition, it ensures an increased level of predictability and resilience to systemic changes and external crises and helps to strengthen the confidence of investors, partners, employees and other categories of stakeholders.
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