Looking Beyond Compliance: The Long Game of Sustainability Management and Reporting

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By
The Protiviti View

How to Move Forward With Purpose

Learn why executives are unwilling to drop sustainability from their agenda, regardless of the political winds and regulatory pull-back. Despite the rollback of mandatory sustainability reporting regulations, such as the U.S. SEC’s climate rule and the EU’s Corporate Sustainability Reporting Directive, businesses continue to prioritize sustainability. This commitment is driven by the recognition of sustainability as a strategic asset that enhances resilience, reduces risks, and offers competitive advantages. A survey by Workiva reveals that a significant majority of executives find value in integrating financial and sustainability data, with many planning to continue climate disclosures independently of political shifts.

This article emphasizes the benefits of a holistic approach to sustainability management, which includes long-term cost savings, product differentiation, supply chain resilience and improved stakeholder trust. It highlights the importance of focusing on metrics that matter—such as waste reduction, GHG emissions and sustainable supply chain practices—to avoid accusations of greenwashing and to leverage sustainability as a market differentiator. It also advocates for robust data management and adherence to international reporting standards to ensure reliability and transparency. It concludes by advising companies to remain steadfast in their sustainability efforts despite regulatory uncertainties, emphasizing that sustainability is not just about compliance but also about seizing opportunities and fostering long-term business growth.