As sustainability continues to gain momentum in 2015 a few key trends are coming to light. Here is PricewaterhouseCoopers (PwC) take on what the business community should consider to secure a competitive edge in sustainability this year.
Climate change was once an obscure phenomenon taken seriously by a small handful of business leaders. This has changed and climate change is now on top of the agenda for people, companies and governments all around the world. Companies can expect to see climate action from the local sphere all the way up to the international level. This has implications for companies as we ebb ever closer to COP 21 and the global climate agreement that is expected to be signed in Paris this December.
The business community is also working closely with the UN on sustainable development goals in the lead up to the climate talks at the end of the year.
The business community will increasingly see the utility of value chain improvements to reduce costs, increase resilience, attract customers and support growth. The logic of collaboration across value chains will continue to drive sustainability.
To help address investor dissatisfaction with current sustainability disclosure we may see a growing number of companies embrace new reporting methods. Investors want better access to information on climate change, resource scarcity, and corporate responsibility. Previous PwC data indicated that the quality of a company’s reporting will directly impact the cost of capitol. These concerns will increase the rate of adoption of reporting frameworks like Sustainability Accounting Standards Board and the International Integrated Reporting Framework.
To see the full PwC January newsletter click here.