Water is high on the 10-year risk list. Too much, too little, contaminated, pure – “water crises” is identified in the recently released World Economic Forum’s 2015 Global Risks Report as one of the most likely and most impactful risks over the next decade. It shares the stage with climate change, extreme weather events, biodiversity loss and ecosystem collapse – all of which involve water.
Recently the European Commission adopted a groundbreaking CSR directive. It applies to 6,000 large companies with over 500 employees. Effective 2017, it directs them to disclose information on policies, risks and outcomes related to environmental matters, social and employee-related aspects, respect for human rights, anti-corruption and bribery issues, and board director diversity. This is a bold and sensible move by the EU and should be applauded.
Now…what will Canada do?
Canada reviews the Canada Business Corporations Act – where does CSR belong?
Having tackled their environmental footprint, more and more businesses are looking at how they can improve their social footprint. Progressive business are pursuing innovative approaches to enhance societal well-being. And there’s no time like the present given the scale of the social challenges ahead, challenges that will also have a bottom-line impact – rising income inequality, high unemployment, aging populations, food poverty and obesity. (The juxtaposition of food poverty and obesity is no mistake but that’s another story.)
These companies are pursuing initiatives that create business value while generating social value. However, they lack a roadmap to guide them on their journey. This was the inspiration for a new report: “Social Value Business Guide”.
When I was a director of a financial institution in the 1990s, we struggled in vain to get top executives to pay attention to the Board’s sustainability priorities. To no avail. Then we stumbled upon the idea of rewarding the CEO for long-term sustainability performance. The result? We saw a dramatic improvement in the company’s sustainability performance from then on (financial performance, too!). Once we realized the impact of this simple measure, the board quickly embedded the principle in its compensation philosophy, which, in turn, spread the concept throughout the management ranks.
It’s a bird … It’s a plane … No, it’s a CFO — the new sustainability superhero!
CFOs are emerging as the new superheroes of the sustainability world. Their unique perspectives, skills, tools and roles empower them to advance corporate sustainability in the rapidly changing marketplace. Deloitte’s global research [PDF] reveals that finance’s sustainability role is on the rise: In 2012, 26 percent of CFOs from large companies indicated they had sustainability authority, up from 17 percent a year earlier. Nearly two-thirds of these finance chiefs expect their involvement to increase by 2014.
Join TSSS on April 1st as our panel explores the power of sport to reach people and communities like nothing else can. Topics to be discussed include: Community Engagement, Sustainable Purchasing, Importance of a Clear Vision, Diversity and Inclusion, Branding and Leaving a Legacy. Learn more
