Business faces complex decisions every day. Today’s management teams face business environment that’s becoming increasingly complicated to read and adapt to. There is also an urgent need to find new avenues and additional opportunities to withstand, mitigate, and adapt to global risks and opportunities. CEOs agree that business success in the 21st century will be redefined by more than financial profit. Many are pushing the boundaries on their business, wanting to take responsibility for impacts beyond financials and therefore have tighter control on a wider set of issues too.
It comes at a time when business’ role in society is coming into sharper focus. Business has got personal. The global community increasingly expects business, as a key role player in society, to take the lead in responding to their needs and the impact they have on their business, its strategy, its reputation, its licence to operate. Transparency and trust have become central to success of business in the longer term, and engagement with stakeholders is taking on a new meaning.
Business has an integral role in creating a thriving society in a thriving environment. Embracing the relationship with society, the environment and government creates a new strategic lens through which to view and judge progress and success.
Nearly 200 UN countries came together twice in 2015 to agree two unprecedented global commitments around sustainable development and climate change – and to achieve them by 2030. Climate change has emerged as one of the most important political and business issues of our time. Significant investment will be required to tackle these major world issues and business will be the critical player in their success. With the climate agreement taking effect in 2020, governments will likely implement new requirements for reporting on climate issues, with additional mitigation and adaptation measures being rolled out.