Your key stakeholders are speaking a new language — one in which risks and opportunities tied to environmental, social and governance (ESG) factors constitute the heart of the narrative.
Well before the COVID-19 pandemic took hold, a fundamental shift was already working its way across the market and redefining the way stakeholders define value. Long-term organizational success now depends on your ability to build, demonstrate and measure long-term value creation that extends far beyond traditional financial metrics. Failing to prioritize those evolving expectations as core components of your purpose, operations and strategy can create challenges to access capital markets, build customer loyalty and maintain social licence to operate over the long term.
Baking long-term value (LTV) into your culture and operations, measuring those efforts and communicating that story authentically is now mission critical. It must extend beyond quarterly financial reporting to look at the kind of benefits that emerge months, or even years, after you make an investment or strategic decision. Doing the right thing has always been the right thing to do. But today, colleagues, investors and stakeholders are expecting it, regulators are reinforcing it and competitors are embracing it.
This paradigm shift presents a real opportunity for organizations willing to chart a new course forward. Canadian companies can lead the way by emphasizing people, planet, prosperity and governance as key focus areas in their business strategy. That’s how you reframe strategy and operations to better balance ambitious business goals with the will to drive a positive impact on the world.
Getting there won’t happen overnight — but every step forward is a step in the right direction. Taking action now means engaging boards and the C-suite in the agenda, and then:
- Reshaping strategy with a bigger focus on LTV.
- Transforming the business to execute on that strategy in your day-to-day.
- Demonstrating and measuring your impact clearly for internal and external stakeholders.