Role of PSFs in Sustainable Business Practices.pptx
- 1. Role of Professional Services Firms in Sustainable Business Practices A Quick Overview
- 2. Key Focus 2 1 A Global Sustainability Imperative Direct correlation between sustainability practices and business performance 3 How Professional Services Firms (PSFs) Accelerate Sustainable Business Transformation
- 3. A Sustainability Imperative Evolving Global Perspectives • Nielsen global survey, a whopping 81% of respondents said that it’s extremely or very important that companies implement programs to improve the environment. • When it comes to action, 73% said they would either definitely or probably change their consumption habits to reduce their impact on the environment. Sources: Please check in slide footnotes for details Consumer Demand • 83% of global consumers are willing to pay more for sustainable products, with an average premium of 5% • Sustainability concerns are particularly influential in sectors like food & beverage, fashion, and personal care ❚ Role of Professional Services Sustainable Business Practices / Sustaibility Imperative Key Drivers Regulatory Landscape Financial Benefits • Stringent Environmental, Social, and Governance (ESG) regulations and carbon emission targets are driving sustainability adoption globally • These regulations create compliance costs but also incentivize companies to invest in sustainable practices to avoid penalties and stay competitive. • Sustainability linked to cost savings, brand value enhancement, and investor attraction (Harvard Business Review) • Studies show that sustainable companies outperform their non-sustainable counterparts in the long run, attracting investments focused on sustainable practices.
- 4. Direct correlation between sustainability practices and business performance • Research, Tech for Progress 360: Accelerating Climate Action with Data-Led Insight, finds that 58% of senior executives strongly agree that their companies have embedded environmentally sustainable business practices have better business performance • Half of the respondents recognize the potential of artificial intelligence (AI) and 40 percent see the potential of advanced analytics to advance their climate-related sustainability goals. Sources: Please check in slide footnotes for details ❚ Role of Professional Services Sustainable Business Practices / Correlation between sustainability practices & business performance Technology : Enabler for Sustainable Business Practices • As regulators place more scrutiny on ESG practices, companies need to pay closer attention to how they track both their initiatives and those of their entire supply chain ecosystems • Survey respondents whose companies lead with embedded sustainable business practices are also more likely to use data and insights to encourage their partners to make progress towards their sustainability goals Tracking sustainability with data-led insights
- 5. Challenges & Opportunities: PSFs play a crucial role in accelerating the transition towards a sustainable future Sources: Please check in slide footnotes for details Client Buy-in C: Clients may prioritize short-term profits over long-term sustainability investments, especially during economic downturns O: PSFs can demonstrate the link between sustainability and financial benefits, such as cost reduction, resource efficiency, and improved brand reputation. Highlighting successful case studies and quantifying potential returns on investment can be crucial. ❚ Role of Professional Services Sustainable Business Practices / Challenges & Opportunities Standardization & Compliance C: Navigating the diverse landscape of sustainability frameworks, regulations, and reporting standards can be challenging for both PSFs and clients. O: PSFs can advocate for greater regulatory harmonization and collaborate on developing industry-specific frameworks. They can also help clients select appropriate frameworks based on their unique needs and context. Data & Analytics C: Ensuring reliable data collection and accurate reporting of sustainability metrics can be complex due to fragmented data sources, lack of standardization, and potential greenwashing concerns O: PSFs can develop robust data management systems, leverage technology solutions like blockchain for traceability, and advocate for standardized reporting frameworks and metrics. Collaboration & Scaling C: Achieving large-scale change requires collaboration amongst different stakeholders. Knowledge sharing and collective action can be challenging. O: PSFs can facilitate industry-wide forums, multi- stakeholder dialogues, and knowledge-sharing platforms. They can also help scale successful solutions through replication and adaptation across different contexts.
- 6. How PSFs can drive Sustainable Transformation Sources: Please check in slide footnotes for details Consulting Solutions • Strategy Development: Crafting comprehensive sustainability strategies aligned with business goals and industry best practices (Catch up COP28 with Mckinsey) • ESG Assessments: Evaluating environmental, social, and governance performance, identifying risks and opportunities (Deloitte, "Climate Risk Assessments for Business“) • Circular Economy: Facilitating the transition to circular models, minimizing waste and maximizing resource efficiency (PwC's work with manufacturers on closed-loop supply chains) ❚ Role of Professional Services Sustainable Business Practices / How PSFs Drive Sustainable Transformation Technology Solutions Research & Trainings • Energy Efficiency Tools: Deploying data-driven platforms to optimize energy consumption and reduce carbon footprint (AI powered Energy management systems: EY, Siemens) • Carbon Footprint Tracking: Implementing software to measure, track, and report greenhouse gas emissions (Carbon accounting and reporting solutions) • Sustainable Supply Chain Management: Leveraging technology to ensure ethical sourcing, transparency, and reduced environmental impact (Digital Twins: Real time tracking, Blockchain-based supply chain traceability solutions). • Workshops & Certifications: Equipping employees with the knowledge and skills to integrate sustainability into their work. • Knowledge Sharing Platforms: Facilitating peer-to-peer learning and best practice exchange
Editor's Notes
- #4: Sources: https://www.nielsen.com/insights/2018/what-sustainability-means-today/ https://sdgs.un.org/goals https://www.simon-kucher.com/en/insights/consumers-around-world-expect-sustainability-will-companies-rise-challenge#:~:text=Our%20most%20recent%20Global%20Sustainability%20study%20shows%20that%20approximately%20one,pay%20more%20for%20sustainable%20goods https://hbr.org/2016/10/the-comprehensive-business-case-for-sustainability#:~:text=Mounting%20evidence%20shows%20that%20sustainable,to%20value%20them%20more%20highly.
- #5: Source: https://www.agilitypr.com/pr-news/public-relations/new-study-finds-direct-correlation-between-sustainability-practices-and-business-performance/
- #7: Sources: Consulting Solutions Strategy: Mckinsey: https://www.mckinsey.com/capabilities/sustainability/how-we-help-clients ESG, Climate Assessments: Deloitte: https://www2.deloitte.com/nl/nl/pages/sustainability/articles/climate-risk-assessment-tool.html Circular Economy: PwC: https://www.pwc.com/hu/en/kiadvanyok/assets/pdf/Closing-the-loop-the-circular-economy.pdf Acc Strat: https://www.accenture.com/content/dam/accenture/final/a-com-migration/r3-3/pdf/pdf-169/accenture-winning-with-circular-economy.pdf Tech Solutions: Energy Efficiency Tools: EY: https://www.ey.com/en_in/power-utilities/why-artificial-intelligence-is-a-game-changer-for-renewable-energy Siemens: https://www.siemens.com/global/en/products/buildings/performance.html KPMG: https://kpmg.com/xx/en/home/insights/2021/06/climatechange-financial-reporting-resource-centre.html Carbon Footprint: https://www.accenture.com/content/dam/accenture/final/a-com-migration/pdf/pdf-135/accenture-decarbonizing-energy-section1-ldm.pdf Research & Trainings: Knowledge Building & Sharing: https://www2.deloitte.com/xe/en/insights/tags/sustainability.html https://www.mckinsey.com/capabilities/sustainability/how-we-help-clients