The value of sustainability
There is a variety of research and facts that show that sustainability represents value for companies. Adherence to a universal value contributes for that fact alone, but also contributes by sharing it with collaborators and customers.
The United Nations (UN) Sustainable Development Goals (SDGs) have become the common global language to ensure a sustainable futureboth in society and in business. They are also becoming an integral part of the way we do business and are helping to provide a path to align us for the future.
Sustainability is increasingly becoming a license to operate and grow. But just like when change happens, there are winners and losers, so it will be imperative that all companies answer the global call for change.
Businesses will need to rethink their operations and purpose to align with new global parameters that are valuing externalities that were once not considered.
What markets are we talking about?
The transformation of “sustainability” will generate enormous opportunities around the world.
At the 2020 BDO Global Natural Resources Conference, the keynote presenter, Fraser Thompson of Alphabet Inc., said that the new sustainable approach could transform industries and create significant business opportunities. The quantifications carried out conclude that the opportunities in food, use of the land and the ocean, in infrastructure and the built environment and in the socio-economic energy and extractive system amount to more than 10 billion dollars. Alphabet estimates job opportunities at approximately 395 million jobs in the next 10 to 15 years.
Government announcements around the world that are likely to advance the transformation towards the SDGs and/or the Paris Agreement, include the EU’s allocation of 30% of the 2021-2027 EUR budget to fight climate change and a new law EU climate change that aims to transform political promises that the EU will become climate neutral by 2050 into a binding obligation. Furthermore, the Chinese government recently announced an astonishing plan to be “net-zero” by 2060, with South Korea, Japan and Britain subsequently committing to zero emissions by 2050. Such commitments will have huge ramifications for trade and capital. . assignment, part of which is felt immediately.
Under the slogan “Uniting the World to tackle climate change”, the United Nations Climate Change Conference (COP26), held in Glasgow, UK, from October 31 to November 12, 2021, brought together representatives of some 200 governments with the aim of accelerating climate action to comply with the Paris Agreement.
Uruguay is committed to the SDGs and during this year, it will present its Voluntary National Report, on progress in fulfilling the 2030 Agenda, before the UN High-Level Political Forum for Sustainable Development (HLPF).
Results achieved
5 key points:
• Encouraged (rather than committing) developed countries to double funding for developing countries to help them adapt to climate change.
• Countries are requested to update its 2030 carbon reduction targets by next year.
• A call is made to gradually reduce “the use of coal as an energy source and subsidies for inefficient fossil fuels”.
• Emphasis is placed on the need to “significantly increase support” to developing countries beyond US$100 billion a year.
• A dialogue will be established to examine the issue of money in exchange for the damage that climate change has already caused.
BDO Commitment
There is a growing business imperative to address sustainability both at BDO and with our clients. At BDO we recognize the need to adapt our strategy, our service offerings and our operations to meet the expectations of all our stakeholders: our customers, our people, our communities and our regulators. We have a dream of sustainability: that we will inspire, educate and lead an unstoppable movement for sustainable business practice in our markets and at BDO.
To achieve this dream, we have established an extensive program that engages both our firms and global resources with the goal of empowering the movement to lead and deliver sustainable practices in our firms and sustainable services to the marketplace.
How can we help
Everyone, public and private, is essential to achieving the SDGs and, as a leader in our markets, BDO plans to assist our clients in their approach to sustainability and the value creation journey that alignment with the SDGs can create.
BDO has created a set of tools (“Toolbox”), which will evolve over time and help companies understand where they are on their way to becoming a sustainability-ready company. Its goal is to help educate, inform and discover areas of opportunity.
The tools are composed of:
• Sustainability insight tool – Sustainability Insight tool (SI).
• Smart and sustainable cities tool.
• Power transition diagnostic tool.
It is exciting to see that BDO is working to move from ambition to action by leveraging these new tools and global network of over 90,000 people in 167 countries.
Our global reach and diverse skill set put us in a unique position to help our global client base achieve and thrive in a sustainable world.
