To do so businesses need to shift from a short-term profit-orientated focus to long-term value creation, all the while including economic, environmental and social factors into their purpose and core strategy. As such, corporate businesses will embrace the wider demands of all stakeholders, whether people and/or planet. This will build their resilience and enhance their licence to operate.
Transparent non-financial corporate reporting is a crucial element of the systemic economic reform the world needs to address these issues. Stakeholders – including investors, but also policy-makers, consumers and employees – need more rounded, comparable and robust information to make decisions about companies.
1. Rationale - Why is this important for you?
2. Objectives - What are you looking to achieve?
3. Solutions - How can we help you achieve your objectives?
Societal value creation has become a critical lens for corporate strategy. In disrupted times, an explicit focus on creating value for society provides a means to navigate market uncertainty and strengthen an organisation’s purpose.
We will work with you to develop and integrate a sustainability strategy into the core of your business, by following 5 steps:
Analyse current situation
Conduct materiality analysis and stakeholder engagement
Reinforce sustainability strategy and action plan
Develop sustainability report and monitor KPIs
Assurance on report
In September 2020, the World Economic Forum - in collaboration with the IBC, PwC, EY, Deloitte and KPMG - released a set of universal environmental, social and governance (ESG) metrics and disclosures to measure stakeholder capitalism that companies can report on regardless of their industry or region. Organised around the pillars of Principles of Governance, Planet, People and Prosperity, the identified 21 core and 34 expanded metrics and disclosures are aligned with the United Nations Sustainable Development Goals (SDGs) and already existing standards, such as the Global Reporting Initiative (GRI) Standards, enabling companies to collectively report non-financial disclosures.
The report, “Measuring Stakeholder Capitalism: Toward Common Metrics and Consistent Reporting of Sustainable Value Creation”, comes at a pivotal moment. The social unrest, economic inequalities and racial injustice exacerbated by the COVID-19 pandemic, have accelerated demand from business, governments, standards bodies and NGOs for a comprehensive, globally accepted corporate reporting system.
What we offer: WEF-IBC Diagnostic Tool
Our WEF-IBC Diagnostic Tool allows us to compare and score your annual reports or sustainability reports with the 22 core metrics and disclosures proposed in Measuring Stakeholder Capitalism: Toward Common Metrics and Consistent Reporting of Sustainable Value Creation.
We use a scoring system to help you further develop your reports to be best in class and aligned with the latest sustainability reporting trends; and the WEF-IBC Common Metrics encourage you to progress faster towards a systemic solution. Following these steps, your report will be transparent, which will build legitimacy for your firm and protect your brand locally and globally.
The 17 SDGs, accompanied with 169 targets, form the 2030 Agenda for Sustainable Development adopted by 193 Member States at the UN General Assembly Summit in September 2015. These goals are the result of an unprecedented consultative process that brought national governments and millions of citizens from across the globe together to negotiate and adopt the global path to sustainable development for the next 15 years. The SDGs are a call to action for rich, poor and middle-income countries to encourage prosperity and simultaneously protect the planet. As such, the 17 SDGs are presented in a way that makes them mutually reinforcing. For example, SDG 1 “No poverty” depends on strategies that boost economic growth and meet societal needs (e.g. education, health, social protection and job opportunities), combat climate change and safeguard the environment – which are also all individual SDGs.
Using the SDGs as a lens to assess opportunities and threats will help you define your business goals and sustainability priorities based on external societal and global needs, and allow you to bridge the gap between current and required business performance.
In order to assess your risks and opportunities, and identify where your business can contribute most to achieving the global agenda, we offer an SDG Self-Assessment. The SDG self-assessment will follow a three-step approach.
STEP 1: We conduct a materiality analysis at SDG level, identifying those goals that are the most relevant to your business.
STEP 2: We set meaningful KPIs to monitor progress towards the SDGs, orienting yourself as closely as possible towards the original SDG indicators.
STEP 3: We evaluate your SDG performance against the defined KPIs.
The GRI Standards help organisations understand their outward impact: on the economy, environment, and society. This increases accountability and enhances transparency on their contribution to sustainable development.
Organisations can either use the GRI Standards to prepare a sustainability report in accordance with the Standards. Or they can use selected Standards, or parts of their content, to report information for specific users or purposes, such as reporting their climate change impact for their investors and consumers.
The GRI reporting framework is the most trusted and widely used in the world. Out of the world’s largest 250 corporations, 92% report on their sustainability performance and 74% of these use GRI’s Standards to do so. We are proud to announce that for the past four years, our annual reviews have always been GRI-compliant.
PwC Luxembourg is a certified GRI Trainer, and we can therefore provide you with a Certified Training Programme. Through this course, you will acquire knowledge of the GRI Standards and reporting to facilitate use within your own organisation. The programme helps run an effective reporting process, producing the best possible GRI report. The Certified Training Programme starts with an introduction to sustainability reporting before going deeper into the GRI sustainability reporting process, focusing on your local issues throughout.
Sustainability reporting is a relatively new process, and it can be challenging to report consistent, reliable, and complete data as a routine, especially given the increasing number of disclosure requirements, organisations, and awards bodies. This is where assurance can help by making sure that reporting data is credible.
Assurance can not only help to strengthen credibility with external audiences, but also for internal purposes, such as assuring managers, executives, and board members that they’re doing the right thing.
Sustainable Finance & Sustainability Leader, Partner, PwC Luxembourg
Tel: +352 49 48 48 4173
Manager, PwC Luxembourg
Tel: +352 62133 41 49