In a fast changing world, where business resilience and perseverance are at stake, it is critical for organisations to operate responsibly and for financial sector to invest sustainably.
The increasing national and international regulations request for explicit disclosure on sustainability and ESG aspects in order to reinforce sustainable growth. It is apparent that the future-proof organisations are called to incorporate sustainability into their strategies, to set measurable goals and to track their performance. By identifying their impacts and risks in relation to environmental, social and governance (ESG) issues, these organisations can strengthen their market credibility and effectively engage with their stakeholders.
Missed the webinar on this topic? Find below some questions raised during this webinar, and their related answers!
Q: How Circular Economy and Life Cycle Assessment both as concepts but also as operational tools relate to the environmental aspects of ESG?
A: EU taxonomy takes into account both Circular Economy as well as Life Cycle Assessment. In particular, for determining the environmental sustainability of a given economic activity, the contribution to circular economy is considered as one of the six environmental objectives posed by the amending regulation on SFDR EU 2019/2088. The established technical screening criteria, among others, take into account the life cycle, including evidence from existing life-cycle assessments, by considering both the environmental impact of the economic activity itself and the environmental impact of the products and services provided by that economic activity, particularly by considering the production, use and end of life of those products and services.
Q: Referring to the CR pyramid do you think that companies are mostly motivated by moral incentives like ethics or the economic prosperity?
A: Traditionally business is driven by the economic prosperity. However, companies that take corporate responsibility and sustainability strategy seriously into consideration have business ethics and values in the core of their activities. These companies understand that profitability, the concern for the environment and social commitment can be in harmony and therefore prove that profit and business’ purpose can go along.
Are you keen to know more about this topic?
Contact our expert Fani Xylouri to learn how we can help you address this specific topic.