In today’s rapidly changing world, businesses play a critical role in addressing climate change and fostering sustainability. To achieve meaningful impact, collaboration, communication, and compliance emerge as the key pillars for impactful climate action within organizations.
By fostering collaboration among stakeholders, facilitating transparent communication channels, and adhering to regulatory and voluntary compliance standards, companies can maintain brand credibility all while building a competitive, sustainable business.
Communication: Breaking down barriers
Jérémie emphasized the prevailing lack of communication within companies when it comes to ESG. It is not uncommon for high-level executives, including CEOs and CFOs, to seek guidance on ESG regulations. This highlights the need for comprehensive education and awareness initiatives across organizations. For instance, creating an executive committee dedicated to ESG matters can foster collaboration and ensure alignment with strategic objectives. Training and onboarding programs become essential tools to empower employees and encourage action towards ESG targets.
“We are at the stage of education, but we need action and commitment. We need to fully understand the risks and opportunities and use this knowledge to drive change. Impactful training is absolutely key.”
Moreover, effective external communication is crucial for businesses to build trust and engage stakeholders. Transparent reporting on ESG performance, goals, and progress can enhance credibility and encourage wider participation in sustainability initiatives. By sharing best practices and success stories, companies can inspire others and drive collective action toward a greener future.
Collaboration: Aligning ESG and finance
Fostering collaboration among different departments within an organization is essential for effective climate action. Breaking down silos and encouraging cross-functional teams allows for a holistic approach to sustainability, where diverse expertise can be leveraged to develop innovative strategies and solutions.
One of the key challenges identified by Jérémie was the alignment of ESG objectives with financial considerations. For instance, involving CFOs can generate alternative solutions, such as paying suppliers in advance to prevent unethical practices like child labor.
“By integrating ESG considerations into core business functions, companies can embed sustainability into their DNA and drive long-term positive change,” says Jeremie Joos, Co-managing Partner of ESG Center of Excellence at KPMG France.
This approach can yield positive results, including increased growth margins and improved profit and loss statements. Involving financial planning and analysis perspectives is vital to harness the full potential of ESG initiatives.
Compliance: Navigating evolving regulations
Staying on top of the latest legislation is crucial for companies aiming to be at the forefront of sustainability. Mapping existing data, understanding the organization’s position, and conducting materiality assessments are essential steps. Structured data and agile internal controls are key to managing compliance effectively.
“Understand where you stand when it comes to data and then work on a roadmap – focus on high priorities, on your materiality assessment. But crucially – don’t wait for the perfect data to get started,” says Jérémie Joos, Co-managing Partner of ESG Center of Excellence at KPMG France.
While striving for improved data quality is important, it’s equally vital to start taking action and refine our measurement methodology along the way. Technology solutions can play a significant role in simplifying compliance processes, making them clear, accessible, auditable, and efficient.
In summary
Jérémie highlighted the critical role of collaboration, communication, and compliance in driving credible sustainability action and becoming a Forever Company. To address the challenges posed by climate and market changes, organizations must foster transparent communication channels, empower stakeholders, and align ESG objectives with financial considerations.
Adhering to regulatory and voluntary compliance standards, while embracing technology, can enhance their ability to navigate the evolving sustainability landscape. Here’s how Sweep for Compliance can help.
