"Sustainability has been moved out of the strategy function and relegated to the lawyers and accountants of compliance. This is not only a new resourcing challenge but a big problem for our overall business landscape, as companies focus more on the “what” of reporting instead of the “why” of innovation. The act of disclosing has become more important than the content of the disclosures themselves."
I agree with this statement, and I think it results in a missed opportunity for companies.
I'd like to encourage holdouts in the oil and gas industry to reconsider their position on ESG. Sustainability reporting in Canada will be implemented in some fashion in the next year or so. It's happening; it's time to get to a place of acceptance.
Even though sustainability reporting is not the panacea that some make it out to be (including the article's author), smart corporate leaders will embrace the potential favourable circumstances it reveals. The reporting obligations alone don't drive innovation, efficiency, and cost reductions; the company leadership does through its creative, entrepreneurial, innovative strategy setting and culture creation using the data obtained from sustainability reporting to mitigate risks and encourage expansive thinking.
There will be cost and resource burdens for companies - those mandated to report and those that have to supply data to the reporting company - but it's up to company leaders to find a way to offset those costs and embrace the opportunity. It can be done.
I think this quote from the author sums it up nicely:
"You are leaving profit on the table if you consider sustainability only a reporting exercise and not a driver of innovation."
If you need help finding the opportunity in the quagmire of complex sustainability reporting requirements, Equipois:ability is here for you! Contact Deidra Garyk at dgaryk@equipoisability.com.
The quoted article:
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