The problem:
Companies that operate in a way that is good for all stakeholders and good for the world are likely to perform better in the long run. Research shows a positive relationship between ESG (environmental, social, and corporate governance) and corporate financial performance.
With regards to ESG, sustainability, and the circular economy, more and more customers and employees want it and policy increasingly directs it. I recently attended Circularity 22 and the call for sweeping changes at the enterprise level was clear. Yet change at this scale is traditionally difficult to achieve.
The solution:
ESG (and sustainability and the circular economy) require strategic business transformation. Because traditional strategy and change management approaches are too costly, slow, and academic, leaders embracing ESG will need a better and faster way. Our clients have found that successful transformation requires the combination of experience, productive knowledge management (critical in ESG, sustainability, and the circular economy), and skillful external facilitation to enable rapid, effective strategy creation and execution, with change management built in upfront.
What can be won and lost:
The stakes are high if ESG, sustainability, and the circular economy are not taken seriously – financially as regulations increase and ethically for people and the planet. Bank of America CEO Brian Moynihan recently said at the World Economic Forum in Davos, ESG is a “big business opportunity.” Beyond the financial potential, as GreenBiz (producers of Circularity 22) puts it, “The Circular Economy is key to a just, resilient, and prosperous world.”
Three main thoughts:
- ESG is a major business transformation opportunity
- Change management is needed for these to succeed
- There is a proven way to accelerate change management
Call to action:
If you need to prioritize ESG or are in the midst of a struggling ESG initiative, we can help. Please email me at akisling@cnsqnt.com or visit us at www.cnsqnt.com.
