Turning challenges into opportunities and long-term value drivers
Political initiatives like the Swiss Responsible Business Initiative and the EU’s Green Deal illustrate the increasing demand by society for concrete transformation towards a more sustainable future. Deloitte can help companies define and align their strategy with responsible values across their value chain to ensure sustainable success.
Focussing your efforts to have long-term impact
What challenges do companies face when integrating responsible business and sustainability into their operations?
- Add initiatives to the corporate agenda by defining purpose, ROI and targets
- Outline a holistic strategy and framework to align with potentially existing initiatives
- Transform company to be more purpose-driven including incentivisation and remuneration
- Define and embed measurable KPIs and metrics
- Challenges with anticipating and implementing future regulatory requirements
- Define required controls to identify and monitor supply chain risks
- Ability to anticipate and respond to occupational health and safety risks
- Relevant tools and technologies to gather and enrich data, report and track operations
- Reliability of data quality and availability from third parties
- Establish targets and indicators to measure, follow-up and report
- Adapt traditional business processes to the needs of the strategy
- Define governance including external assurance needs
Switzerland: shifting to a hub of sustainability
Lively discussions around the Swiss Responsible Business Initiative ‘Konzernverantwortungsinitiative’ (RBI) further illustrate the growing momentum of political initiatives, societal pressure and demands from institutional investors to force companies to prioritise sustainability, responsibility and accountability in their business operations.
The RBI would require Swiss companies to ‘respect internationally recognised human rights and environmental standards at home and abroad’. This includes:
- Mandatory due diligence for business relationships and activities at home and abroad
- Liability for human rights abuses and environmental violations caused by companies under their control
- Victims of human rights violations and environmental damage may be able to seek redress in Switzerland unless the company can prove that they took necessary measures to such prevent violations
Additionally, there is a clear push from the government to make Switzerland a leading hub for sustainable finance with tangible regulation expected by the end of 2020. The Swiss Financial Market Supervisory Authority (FINMA) is also considering aligning climate risk regulation to that of the Task Force on Climate-related Financial Disclosures (TCFD). This political ambition will undoubtedly extend to other areas including sustainable technology so companies need to proactively think about and develop their strategies now for the future.
How Deloitte can help
Deloitte helps clients successfully develop responsible business and sustainability initiatives. Deloitte supports companies to embed these strategies into business activities wherever they operate and deliver long-term sustainable value to the company and its stakeholders.
Our service offering falls into five priority areas, highlighted below:
- Responsible business strategy: Assess effect of changing customer, client and investor sentiment to define purpose, focus and where to make a material impact
- Sustainability governance: Clear frameworks to monitor processes and responsible departments
- Materiality analysis: Deciding the issues and risks to focus on in terms of environmental, social and governance impact
- Stakeholder engagement: Buy-in achieved at all levels with quantifiable KPIs and measurable ROI
- Integrated risk management: Defining or revising existing scopes and approaches to incorporate sustainability within the wider framework
- Implementation support: Processes, tools and frameworks to enable the execution, reporting and monitoring of such initiatives
- Third party risk management: Holistic and scalable frameworks designed to onboard, manage and monitor risks from such relationships
- Circularity: Circular economy programmes implemented to meet stakeholder expectations and minimise environmental impact
- Human rights: Managing and monitoring human rights across the entire value chain regardless of location
- Conflict minerals: Processes to increase supply chain transparency and monitoring
- Crisis management: Resilient frameworks to best prepare your firm for future crisis
- Processes, controls and compliance: Necessary frameworks to safeguard employees, society and the environment
- Building capability: Systematic requirements and programmes to drive alignment of people, processes, and technologies
- Sustainability reporting and Assurance: Consistent, complete and credible data to allow for benchmarking and improvements, as well as safe and reliable reporting
- Sustainability disclosures: Disclosures prepared in accordance with relevant standards and reporting requirements
- Investor relations and AGM sustainability support: Addressing the increasing regulatory, societal and market requirements for social responsibility and sustainable practices
- Metrics and target setting: Quantifiable KPIs to measure progress against corporate objectives and regulatory requirements
- Responsible investment and impact investment: Strategies that focus on generating a positive impact in line with the UN’s SDG
- Risk identification, quantification and portfolio stress testing: Evaluation, mitigation and scenario planning for various types of risks including climate, environmental and pandemic
- Policy design and framework implementation: Strategic approach and implementation to adhere to necessary regulations, shareholder objectives and corporate strategy
- Regulatory advisory: Detecting deficiencies in current reporting solution and defining necessary disclosure data to adhere to EU and Swiss regulations
- Climate risk assessment (physical, transitional and portfolio stress testing): Measuring current risk and impact for your company and investment portfolio, as well as management processes and controls
- TCFD and climate frameworks implementation: Necessary controls and quantifiable KPIs including climate risk modelling and reporting as per the Task Force on Climate-related Financial Disclosures (TCFD)
- Carbon footprint calculation, target setting and monitoring: Specific to your business operations and investment portfolio including industry benchmarking and best practices
- Climate risk modelling and reporting: Relevant impact scenarios, risk mapping and sophisticated tools to inform business models and strategies
- Renewable energy consulting: Potential energy sourcing alternatives, both industry and location specific, to meet your firm’s climate strategy goals
Our approach and ecosystem
From designing practical tools and innovative approaches to working with leading organisations and harnessing the power of the next generation, Deloitte is working with different partners to deliver effective solutions to some of the world’s most complex global challenges.
Digital with Purpose: Delivering a SMARTer2030: Deloitte and the Global Enabling Sustainability Initiative (GeSI), published an innovative report illustrating the relationship between the digital industry and the SDGs and how digital technologies can help maximise contributions to achieve these goals.
ClimWise: this dynamic decision-making tool helps financial stakeholders quickly and accurately identify the transition risk concentration of their business portfolio. Adaptable to banks’ existing risk management methodologies, it integrates the development of climate stress tests on targeted high-at-risk segments.
UpLink: a joint collaboration between the World Economic Forum, Deloitte, Microsoft and Salesforce, UpLink is open-source digital platform to foster mass participation from entrepreneurs, community groups and others to meet the UN’s SDGs. Deloitte is using its technology expertise and execution capabilities to develop a Salesforce-enabled platform to enable collaboration.
UNLEASH: founded in 2016, UNLEASH is a non-profit that aims to develop solutions to the SDGs and build capacity for young people from around the world through innovation labs, pre-accelerator programmes and hackathons. As a lead innovation partner, Deloitte supports the design, delivery and facilitation of the Innovation Labs and works to bring 1,000 young people’s novel ideas to become practical solutions.
A unique opportunity to integrate social value
Deloitte’s fifth annual extended enterprise risk management (EERM) global survey report highlights six key themes, alongside the impact of COVID-19 on managing third-party risk and our predictions for 2020-21.