Now Reading: Deloitte framework links sustainability spending to long-term business value
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Deloitte framework links sustainability spending to long-term business value
Deloitte framework links sustainability spending to long-term business value
Deloitte has unveiled a framework to help companies measure the business value of sustainability investments, beyond regulatory compliance. Called The RoI of Responsibility, it covers direct gains such as energy savings and…
The Story in Brief
Deloitte has unveiled a framework to help companies measure the business value of sustainability investments, beyond regulatory compliance. Called The RoI of Responsibility, it covers direct gains such as energy savings and operational efficiency, along with less visible benefits including market access, lower financing costs, customer loyalty, employee retention and brand value.
At the Mint Sustainability Summit, Deloitte South Asia partner Shubhranshu Patnaik said companies should assess risks and opportunities over five to 10 years through scenario planning. The framework links material issues such as carbon, water and supply-chain resilience to revenue, cash flows, avoided losses and enterprise value. Deloitte cited a sugar company that improved energy efficiency and water recycling to strengthen exports and prepare for water shortages.
The Indian Opinion
The lazy claim that every ESG project is either a costly compliance burden or a guaranteed profit engine misses the harder task: proving the return. Benefits such as brand value and customer loyalty can be difficult to isolate from wider business performance. Companies should publish clear baselines, investment costs and timelines, rather than rely on broad sustainability claims. The useful test is whether reported savings, export gains or financing benefits can be checked after five years.
Source: livemint.com
This story was synthesised by AI from the source linked above.
