Bruno Berthon, David J. Abood, Peter Lacy [Archive.org URL]

The hope of many CEOs is that we are moving toward an era in which businesses will no longer focus purely on near-term profit and loss as the primary means of valuation, but rather also take into account the positive and negative effects on society and the environment. This would entail a significant shift on the part of business that would in turn involve meeting at least three significant challenges.

First, it would require companies to measure their sustainability performance in terms of the positive and negative impacts on society. Second, businesses would need to link their performance on sustainability to traditional business metrics and value creation, such as revenue growth, cost reduction, risk management and brand/reputation. Third, it would necessitate the embedding of sustainability outcomes within employee performance frameworks and remuneration packages. These changes would require new kinds of information systems and analytics to support a company’s sustainability performance management.

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