Inform strategy: incorporate consideration of environmental limits and social foundations into the organisation's core strategy-making process.
To what extent do you integrate sustainability into your core strategy-making process?
Our corporate partners wanted to understand how to factor social and ecological limits into their core strategy and goal-setting processes. They needed to make sense of the different frameworks and tools emerging to support a contextual view and they wanted to know what early leaders were doing to address context.
Momentum is growing for organizations to formally and transparently articulate the risks that climate change poses to the value of their assets and their future profitability. The Task Force on Climate-related Financial Disclosures (TCFD) has emerged as a response to this call for action, empowering companies to more effectively measure and evaluate their own risks and those of their suppliers and competitors. The TCFD promotes “consistent, comparable, reliable, clear, and efficient” voluntary climate-related financial disclosures, and has developed comprehensive recommendations and resources in support of this. These resources focus on governance, strategy, risk, metrics, targets, and the use of scenario analysis for evaluating climate-related financial risks and opportunities.
The work of the TCFD has culminated in a comprehensive Final Recommendations report and several supplemental reports, including a Technical supplement, which provides in-depth information and tools for using scenario analyses to understand the strategic implications of climate-related risks and opportunities to your organization.
In a changing world where the long-term economic, social, and environmental outlook is tremendously complex and uncertain, it has become increasingly difficult to respond to emergent trends. This guide from A4S was designed to improve decision-making and risk management by providing finance teams with tools, practical examples, and guidance on how to integrate sustainability into strategic planning, budgeting, and forecasting.
If you are beginning to consider what a sustainability strategy might look like for your organization, this article is a good place to start. It offers a high-level look at steps involved in developing a sustainability strategy.
Focus on sustainability mega challenges first, and then work backwards to find the most profitable path to get there. In Radically Practical Strategies, Part II of The Big Pivot, Andrew Winston weaves together a collection of stories that offer insight into how to build a resilient company by integrating sustainability into organisational strategy.
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