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Viewing Your Business Model Through a Sustainability Lens

January 31, 2024

Viewing Your Business Model Through a Sustainability Lens

Businesses today are facing challenges as they integrate sustainability into their core strategies and operations. While there is a growing awareness of the need for sustainable practices, many organizations struggle to move beyond superficial measures. The business community is making progress by understanding regulatory expectations, measuring their societal impact, and engaging stakeholders in dialogue. However, the adoption of “needle-moving” actions that truly integrate sustainability into strategies is slower, according to an article by Deloitte. 

The primary barrier is uncertainty. Deloitte Global conducted interviews with leaders from various sectors, revealing challenges in facing integration issues at multiple levels. 

Recently released standards by the International Sustainability Standards Board (ISSB) changed sustainability disclosure reporting from voluntary to mandatory, and some companies still consider environmental, social, and governance (ESG) reporting solely as a compliance activity. 

In doing so, they may be risking their business continuity and future performance. The transformation required to address climate change goes beyond reducing emissions, necessitating a fundamental shift in how businesses operate. Leaders using a sustainability lens to view their business model will better be able to create value and discover new insights.

To overcome integration challenges, they are advised to invest in data quality, identify material risks aligned with their purpose, establish strong governance structures, engage in authentic stakeholder dialogue, manage uncertainty by reframing problems, and commit collectively to sustainability. No organization can address sustainability challenges alone, highlighting the need for concrete actions, investment, and continuous improvement to reshape business ecosystems.

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