The topic of sustainability could be compared as the main course at Davos proceedings this year. Everyone had to make some sort of reference to it in one way or another. Is there any specific commitment made however? Should we expect any real impact out of the so many declarations by policy makers and corporate leaders? Here are some specific steps taken by EU policy makers that may lead to a shift in corporate sustainability trends:
- Through the recent European Green Deal, the goal is for Europe to become the first carbon neutral continent by 2050. The first steps will be the provision of a sustainable investment fund (1 trillion euros) for the next decade, as well as a more demanding Climate Legislation. The European Green Deal will be based on four pillars: the Emissions Trading System, Sustainable Investments, Industry policies, and Fair Transition and will directly affect existing business models and thousands of European organizations they have not integrate sustainability strategies.
- The shift to circularity will become more and more obvious, and a $24 billion stimulus package has been announced to facilitate circular economies in Europe.
- Sustainability report will evolve. More sustainability (ESG) reporting is expected, and the reach of the GRI (Global Reporting Initiatives) and other related standards will continue to grow as companies seek to improve transparency, integrity and reliability.
- Measuring performance and impact is becoming more and more important and a requirement from investors. Specifically, measurements will be required for demonstrating activities and their impacts to stakeholders improving decision-making as programs evolve over time, and align sustainability activities with corporate goals.
In conclusion, as Christian Jermyn has said:
I think it’s fair to say that not just for the sustainability community but also for wider business, Davos has given some much needed momentum and direction, some mind blowing pledges have been made. We now need to be brave, show courage in our leadership and start to deliver, we need to think of leadership in terms of the biggest management of change initiative we’ve undertaken, to allow our colleagues, managers and executives to see the opportunities required to make the transition to a decade of delivery.