In this, the second part of our series on sustainability and IR, we explore the methodology issuers can adopt in developing a credible sustainability strategy that caters to the needs of an increasingly diverse stakeholder base.
Most companies now recognise the multi-faceted benefits of having a sustainability strategy in place, although many are yet to develop a clear business case for such a strategy. The approach thus far for the majority has centred around downside protection and risk minimisation, as opposed to exploring the upside potential and maximising potential opportunities from embracing a true sustainable agenda.
As the need to focus on these elements grows at Board and Management level, Investor Relations can play a critical role in the development and execution of an appropriate strategic direction. To begin with, defining a clear mission for the business will help clarify the positive role it can play in society at all levels. Distilling this down further, the company needs to outline how it aims to deliver its vision within a framework that is easy to follow both internally and externally.
In this paper, we explore the methodology issuers can adopt in developing a credible sustainability strategy that caters to the needs of an increasingly diverse stakeholder base.