The context in which businesses now operate has been transformed by climate change, nature loss, social unrest around inclusion and working conditions, COVID-19 and changing expectations of the role of corporations. Further, the global pandemic has exacerbated underlying and longstanding failures regarding equality and access to economic opportunities. To continue to thrive, companies need to build their resilience and enhance their licence to operate, through greater commitment to long-term, sustainable value creation that embraces the wider demands of people and planet.
The IBC has been leading the way in this initiative to deliver on the promise of stakeholder capitalism. In 2017, it sponsored the World Economic Forum’s Compact for Responsive and Responsible Leadership, in which more than 140 global business leaders committed to align their corporate goals with the long-term goals of society. In its Summer Meeting 2019, IBC members reaffirmed the significance of environmental, social and governance (ESG) aspects of business performance and risk in creating long-term value. They flagged the existence of multiple ESG reporting frameworks and the lack of consistency and comparability of metrics as pain points preventing companies from credibly demonstrating to all stakeholders their progress on sustainability and their contributions to the SDGs.
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