Mazars encourages business leaders to think about their position with regard to their ESG journey, stating that "sustainability has to become the business strategy"
Lisbon, December 6th, 2022 - Mazars, an international auditing, tax and consulting firm, presents its report on ESG: where are you on the journey? a sustained vision of environmental, social and governance (ESG) issues on business agendas and sets out the possible path for companies of all sizes, in different sectors and geographies, as they prepare to take off or set the pace on their sustainability journey.
"In our experience, dealing with ESG issues (Environmental, Social e Governance) requires education, knowledge and a mindset of change: one that moves ESG from the periphery to the heart of the company. Senior leadership must realize that sustainability is not an end, but a journey, a path that realigns the company's purpose, strategy and business model in harmony with nature, people and communities. As the world changes, we have to keep moving. A sustainable strategy has to become a business strategy," comments Chris Fuggle, Global Head of Sustainability Services at Mazars, on the report.
For Maria João Vaz, Sustainability Director at Mazars in Portugal, this change in mentality is now taking place "due to market pressure, legislative adaptation and because, effectively, there's no getting away from this issue. It's a question of survival. Sustainability is, and will continue to be, the driver of the business, and it's important that senior managers are the main drivers of this change. We can no longer just talk about difficulties and costs, but about a window of opportunity, from attracting talent to financial return. Mazars wants to be an active partner for companies, proposing to develop and implement services tailor-made to contribute to better performance, a more sustainable path and, ultimately, a more prosperous economy."
Providing business leaders with the information and key strategic thinking points needed to broaden their understanding of ESG issues and the business opportunities most likely to emerge, the report presents:
- An overview of the regulations for corporate ESG reporting: why the change is happening and what its impact will be.
- The challenges the C-Suite faces in moving from words to action on sustainability and the commitments it is making.
- Guiding principles on how senior leadership can strengthen their resolve and look at ESG as a business opportunity.
- Geographical perspectives that provide valuable lessons on how others are addressing global and local ESG challenges.
- A view from Mazars' global experts on three sectors leading the way on ESG issues.
- Guidance on how to create a business case for compliance ESG and where to start.
- Top tips for advancing on the ESG journey.
As new regulations emerge, ----- greenwashing is no longer an option
With regulators on both sides of the Atlantic looking to introduce demanding new rules on ESG reporting and new internationally standardized metrics, companies, including those in the value chain, cannot afford declarations of intent on sustainability topics. They are obliged to provide tangible proof that they have a coherent sustainability strategy and are actively implementing it, and that the communication and disclosure metrics used clearly demonstrate how they are progressing.
Even before the application of the new rules, investors seeking to assess risk exposure and large international companies seeking to inject sustainability objectives into value chains have substantially increased the pressure for companies to become more sustainable. This affects companies of all sizes and sectors, including private businesses and small and medium-sized enterprises.
ESG rooted in the C-Suite agenda
O C-Suite barometer The most recent survey reveals that three quarters of managers are planning to increase investment in sustainable initiatives. The biggest barriers to investment in ESG issues were identified as funding (52%), complexity (51%) and the risk of low return (49%).
With regard to communication and disclosure, 631% of those surveyed had already produced a sustainability report. According to the results of the barometer, the quality of the information was seen as the most challenging topic (39%), followed by prioritizing the topics to be included (29%) and data tracking (28%).
Learning from the challenges gcommon lobbies
Many of the issues that companies face in responding to ESG requirements are common to all, whatever their geography. What companies can do to ensure they have a social license to operate, what metrics they use to measure progress and how to navigate the different standards and regulations are all issues that most companies around the world face. By discussing working perspectives from their respective countries, Mazars' partners help clarify how to respond to both local and global challenges.
Create the argument for the business
While the risks of non-compliance loom large, there are significant benefits to be reaped from adopting ESG rules, including greater efficiency and lower costs. The report highlights why making the ESG business case can help companies achieve the mindset shift needed to stop treating the issue as a costly compliance burden and more as an investment in the future.
Who leads and why?
Different sectors of the economy face a variety of common challenges in implementing regulations on ESG issues. Yet many have specific challenges and at various stages of their stability journey. The report identifies three sectors obliged to be at the forefront as they are among the most exposed to ESG-related social pressures. In the process, they have learned some lessons that apply to others outside their sectors.
"We hope the report will help organizations around the world gain a better perspective on ESG issues. By providing practical guidance to move from words to action and sharing knowledge about common challenges, we can help companies to be more positive and confident in moving forward on their ESG journey," concludes Chris Fuggle.
About Mazars
Mazars is an international integrated partnership specializing in audit, accounting, consulting, tax and legal services*. Operating in more than 90 countries and territories around the world, we draw on the expertise of more than 44,000 professionals - 28,000+ in the Mazars integrated partnership and 16,000+ via the Mazars North America Alliance - to support clients of all sizes at every stage of their development.
*when permitted by local legislation.
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