Solutions

Sustainability Services

In today’s business environment, where changes in the market trends, development of new business models, new governance, and new regulatory framework are increasingly shaping the business world of tomorrow, a carefully orchestrated sustainability strategy is vital for long-term success.

For decades, organizational performance has been measured primarily in financial terms, depicting the organization’s use of its own assets. Today, however, investors and other stakeholders recognize that an organization’s ability to create and sustain long-term value reflects its use of other resources, such as human, environmental, or intellectual capital.

Trust in an organization is achieved through transparent behavior and is a key success factor for the business to operate, innovate, and grow. Sustainability and integrated reporting promotes the need to answer the important questions around long-term value creation.

At Deloitte Luxembourg, we are convinced that organizations should and can progress to a more responsible and sustainable world and take an active role in the transition. For this reason, and to accompany you through the transition, we have developed five services on which we intend to focus our expertise:

  • Responsible investment
  • Impact measurement 
  • Sustainability reporting and assurance
  • Corporate Social Responsibility
  • Sustainable business model

Responsible investment

Who is concerned?

Investors are increasingly looking for financial return paired with a positive social impact. Financial institutions should diversify their portfolio by integrating responsible and sustainable products such as smart infrastructures, green technologies, or climate impact investment.

What is responsible investment?

To ensure the transition to a more responsible society, each player of the financial industry can shift its business model from a short-term profit strategy to a profit strategy including sustainable societal impact. Responsible investment relates to investments that consider social and environmental impacts at the same level as financial return, for example green bonds, ESG (environment, social, and governance) integration strategy, and sustainable-themed investment or impact investment. Impact investing is considered the best of the responsible investment process, making a positive impact on the society when defining the investment project.

How can Deloitte help?

The Deloitte Luxembourg sustainability team can support financial institutions in defining their responsible investment strategy and identifying the key performance indicators to monitor the impact and demonstrate a positive social and environmental impact.

Our team also provides financial institutions with external assurance on their responsible investment procedures or on their performance reporting.

Responsible investment - PDF - 643kb

Impact measurement

Who is concerned?

Financial institutions, civil society, as well as the private and public sector are increasingly trying to understand their risks and impacts of their strategy and operations on society. Impact measurement helps these organizations to demonstrate how risks and impact are identified, monitored, and managed through their value chain.

What is impact measurement?

Impact measurement is based on the identification of impacts, dependencies, risks, and opportunities. This process can help organizations to understand their impacts and dependencies and to align business development strategies accordingly to ensure a more responsible and sustainable development of their activities.
Impact measurement can be an important tool to influence the opinions and perceptions of the key stakeholders of investments.

How can Deloitte help?

The Deloitte Luxembourg sustainability team can support you in the process of identifying your impacts, dependencies, risks, and opportunities. Based on that we can also provide support in the design of the best strategy to be embedded within your business model. Finally we can support you in identifying the best performance indictors to use for measuring impact and demonstrating commitment externally.

Impact measurement - PDF - 977kb

Sustainability reporting and assurance

Who is concerned?

Expectations of stakeholders and investors are growing, making it more and more important that private and public organizations improve their communication to demonstrate their commitment to a more responsible and sustainable world.

What is sustainability reporting and assurance?

The reporting and assurance includes the financial performance reported through the annual financial statements; the non-financial performance of organizations could be demonstrated through a dedicated communication support, namely the CSR report. The objective of the CSR report is to demonstrate, in a transparent way, the responsibility of the organization toward the society. The information that should be disclosed is related to the organization’s corporate governance, the stakeholders’ engagement, as well as the environmental, human resources, and social-related material topics. Specific performance indicators complete the information to allow the monitoring objectives to be demonstrated.

International frameworks such as the Global Reporting Initiative (GRI) or the Integrated Reporting (IR) provide guidelines to organize and design the report.

Finally, the accuracy and reliability of the information disclosed could be demonstrated through external assurance.

How can Deloitte help?

The Deloitte Luxembourg sustainability team can support you in the development of your sustainability report, from the data collection process to defining your story. We can also provide you with external assurance on compliance with international frameworks or on specific key performance indicators.

Corporate Social Responsibility

Who is concerned?

Independent of the economic sector an organization is active in, it is the responsibility of the organization to provide a thriving place to work for their employees. Corporate Social Responsibility is for public and private organizations that would like demonstrate how they are concerned and involved in the local community development.

What is Corporate Social Responsibility?

Corporate Social Responsibility (CSR) is an internal commitment that ensures employees have a good place to work and supports local communities through various activities, such as sponsoring, sharing experience, and event organization. CSR is the internal added value and a key differentiator for attracting and retaining talent.

How can Deloitte help?

The Deloitte Luxembourg CSR team can support public and private organizations that would like to enhance internal social responsibility. Deloitte can support them in implementing internal CSR activities such as sports clubs health, and wellbeing sessions. We can also identify a win-win collaboration with NGOs, which can complement your internal values.

Sustainable Business Model

Who is concerned?

Private and public companies’ first objective is to manifest a sustainable financial performance and design their business model accordingly. However, it frequently happens that inconsistencies between the defined business strategy and the sustainability strategy exist. A sustainable business model is relevant for organizations that would like to move to integrated thinking and embed sustainable strategy and objectives within their overall business strategy and value chain.

What is a sustainable business model?

In a changing market context, companies are facing new challenges:

The first one is linked to the new communication technologies, which has raised new concerns on the access, control, and security of information.

Another challenge is linked to resource scarcity (energy, raw material, water, assets), which leads companies to implement a new, more resilient, and flexible supply chain model and that is smart and connected.

Defining a sustainable business model allows companies to transform their current model to a more integrated thinking process that considers the evolution of society and the new challenges. Integrated thinking is a strategy definition process that integrates sustainability challenges. It requires the development of a long-term vision and change management and allows companies to innovate and position itself on a competitive market.

How can Deloitte help?

The Deloitte Luxembourg sustainability team can support companies to assess their current strategy, understand how new regulations, market demands, and the evolution of society will affect the current business model and to design a new adapted long-term vision and sustainable strategy. The Luxembourg sustainability team benefits from the support of a worldwide network of experts in various industries and with a strong knowledge of innovation and new technologies.
 

Contact

Tom Pfeiffer

Tom Pfeiffer

Partner | Sustainability Services & CSR Leader

Tom Pfeiffer is a Partner at Deloitte with over 20 years of experience in audit and advisory in the financial, commercial, industrial and public sectors. Tom is CSR Leader and Sustainability Co-Leader... More