Crab Insight – January 2022

Red Tape Busters Volume 9, Issue 04, `The Triple Bottom Line’

 

Welcome to the January edition of Crab Insight

The measurement of a company’s value is so much more than just profit and loss.  Businesses who might be considered industry leaders – for example BTShell and Virgin – have been steadily supplementing their annual financial assessments with reports on their environmental and social impacts, creating a so-called ‘Triple Bottom Line’.  Along with highlighting wider governance matters (collectively these are known as Environmental, Social and Governance or, simply, ESG) those at the top of business recognise that using the organisation to do right – as well as make money – is actually good for business.
 

Claudia Crab’s January Focus

Claudia the Crimson Crab icon

“ESG: Environmental, Social, Governance”

“Sustainability is no longer about doing less harm. It’s about doing more good.” — Jochen Zeitz, President and CEO of Harley-Davidson.

The concept of sustainability in business has been around for many years but things like the COP26 climate conference have given it rocket boosters. Historically, short-termism has driven commercial decision-making, putting financial profit above all other considerations, but even the briefest of pauses to consider a longer-term view will quickly bring about a more considered and holistic approach to doing business.

Incorporating environmental and social considerations into the heart of a commercial operation may appear at first to be counter-intuitive and self-defeating but what, for example, could be a bigger threat to an organisation’s income than the effects of climate change? Similarly, assuring the wellbeing of your staff, not to mention not meeting your customers’ ethical expectations, aren’t optional fripperies because if they’re done incorrectly they’ll have a negative impact on your financial bottom line (through increased expenditure on high staff turnover or lower income from a diminishing customer base).

ESG and sustainability for many businesses will not be a radical departure and, indeed, many may have been embracing aspects of it without knowing of the concept. Covid 19 and the climate emergency however have changed things up – look at the increase in electric vehicle sales and the numbers of people wanting to work in ways that provide a better work / life balance – and we can see that in order to stay in business we’ll need to demonstrate that we’re taking account of what people expect of those to whom they give their money.

Our question of the month for January is

What does sustainability mean to my business?

 

 

Top tip: Business sustainability is about investment not expense –  small changes can make a big difference to the way that your business is perceived.

 


F2 Business Huddle Online

Friday 14 January 2022, 12 noon to 2 pm

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