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Organizational Sustainability Transformation | Accenture

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Organizational Sustainability Transformation | Accenture

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Accenture helps companies unlock the business and environmental value of organizational sustainability by strengthening their sustainability DNA. Read more.

Accenture helps companies unlock the business and environmental value of organizational sustainability by strengthening their sustainability DNA. Read more.

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Organizational Sustainability Transformation | Accenture

  1. 1. From insights to action, the path to extraordinary value starts here. Shaping the Sustainable Organization How responsible leaders create lasting value and equitable impact for all stakeholders In collaboration with the World Economic Forum
  2. 2. Operating sustainably is not an option. It’s a business imperative. Leaders are under intense pressure to build sustainable organizations that deliver financial value and societal and equitable impact for all stakeholders. The COVID-19 pandemic has intensified the challenge. Sources: Accenture Future of Work Study; Accenture Covid-19 Consumer Pulse Study; Principles for Responsible Investment. Employees Consumers Investors 65% 66% 28% believe organizations should be responsible for leaving their people "net better off" through work plan to make more sustainable or ethical purchases over the next six months increase in investor signatories in 2020 to the UN’s Principles for Responsible Investment Stakeholders are more demanding:
  3. 3. Overconfident leadership teams drive a sustainability consensus gap The apparent overconfidence of leadership teams is evident in how they grade their organizations’ overall sustainability performance. The further stakeholders are from the management core, the more their perspectives diverge, and the less able organizations are to use their insights to shape decision-making. Executives rate the sustainability performance of their organizations higher than other stakeholders Sustainability performance perception score (Max=100) Source: Accenture analysis of executive and employee/consumer/citizen surveys. Note: Respondents were asked a series of questions relating to the 21 practices and 10 enablers from our Sustainability DNA model. Executive and employee scores were calculated from 23 questions; consumer and citizen scores from 10 questions. 71 67 65 57 56 Executives Employees (all) Employees (below management) Consumers Citizens Figure 2
  4. 4. Our research shows that relatively few stakeholders have full faith in the sustainability promises that leadership teams make. The credibility and authenticity of company sustainability commitments should concern leadership teams. These consensus gaps are leading to an erosion of trust that can be felt across the entire enterprise and stymie efforts to shape sustainable organizations that deliver value and impact. Employees don’t trust senior leaders to “walk the talk” Stakeholder trust in business sustainability commitments is low How often do the companies you work for / buy from / interact with locally translate sustainability commitments into positive social and environmental action? Source: Employee/customer/citizen survey (N=2,408); excludes “Don’t know/Not applicable” responses. Note: Respondents to the employee survey were randomly assigned to answer questions as consumers and citizens. See “About the research” for further detail. Figure 3 4% 13% 43% 31% 9% Consumers 4% 12% 35% 37% 12% Employees Never Rarely Sometimes Often Always Citizens 4% 15% 43% 30% 8%
  5. 5. Sustainability remains a second- tier priority for executives Shaping more sustainable and equitable organizations presents a major challenge to many leadership teams. Most executives recognize the benefits, but 58% believe operating more sustainably involves a trade-off with growth. When forced to choose, executives show a clear preference for more traditional concerns. Sustainability trails other organizational priorities Top business priorities (percentage of executives): Source: Executive survey (N=1,496). Note: Respondents were presented with 17 priorities which we then assigned to five buckets. Graph shows the weighted average for each bucket. See “About the research” for further detail. Figure 5 Financial performance Brand reputation Talent management Sustainability Offering development 24% 21% 20% 19% 15%
  6. 6. The lack of leadership focus on sustainability— and on nurturing the stakeholder relationships underpinning it—is and opportunity cost that not only prevents progress but carries a financial risk. The cost of persistent consensus gaps Stronger consensus on sustainability performance is associated with better financial performance Positive sustainability consensus vs financial performance: Figure 7 Stronger consensus on sustainability performance Stronger financial performance Average Average
  7. 7. Change starts with the Five Elements of Responsible Leadership In our previous report, Seeking New Leadership, we identified five leadership qualities that executives need to guide their companies in the decade ahead. However, these five elements are only the start. Emotion & Intuition Instinct Humility Compassion Intellect & Insight Data-to-knowledge Critical thinking Continuous learning Mission & Purpose Integrity System thinking Sensemaking Stakeholder Inclusion Trust Accountability Impact Technology & Innovation Tech vision Responsive innovation Creativity
  8. 8. Shaping change through Sustainability DNA Comprised of 21 practices, categorized into 10 enablers, Sustainability DNA drives human connections, collective intelligence and accountability at all levels Stakeholder Inclusion Emotion & Intuition Mission & Purpose Technology & Innovation Intellect & Insight Analyzes inputs, impacts and risks across multiple time horizons → Performance & Reporting → Risk Management Champions inclusion, diversity & equality inside the organization and beyond → Equal Workplace Opportunity → Human Development Prepares people for the future world of work through targeted learning and development → Employee Growth → Ecosystem Development Harnesses emerging tech to solve problems without creating harmful side effects → Data Privacy & Consumer Protection → Environmental & Social Innovation Elevates good citizenship of Earth's natural and human environment → Sustainability Stewardship → Sustainable Operations Takes a systematic approach to upholding and enhancing business ethics → Environmental & Quality Standards → Competition & Conduct → Labor Standards Upholds the rights and responsibilities of all stakeholders → Stakeholder Welfare → Environmental Targets Is consultative and listening by default → Feedback Mechanisms → Comprehensive Communication Shapes workplaces and stakeholder experience to build mental and physical resilience → Progressive Working Practices → Health & Well-being Embeds the organization’s purpose in all activity → Executive Compensation → Transparency & Accountability Accountability at All Levels → Practices Collective Intelligence Human Connections Click to see the enablers in action at accenture.com
  9. 9. Sustainability DNA addresses barriers to creating stakeholder value Sensing and championing the values and needs of diverse stakeholders across the business ecosystem. Decision-making mechanisms that help organizations make better stakeholder- centric decisions. Making stakeholder value creation a requirement at all levels of the organization. 01. Human Connections 02. Collective Intelligence 03. Accountability at All Levels
  10. 10. Strong Sustainability DNA is associated with higher value and a lasting positive impact on society and the environment Source: Accenture analysis; Arabesque S-Ray; S&P Capital IQ Organizations with the most deeply embedded Sustainability DNA outperform peers by 21% on both profitability, and positive environmental and societal outcomes 21% higher EBITDA margin (+3.4 percentage points) 21% higher sustainability performance (+9.2 index points)
  11. 11. AB InBev: Innovating to close the loop Challenge: Reducing waste throughout the supply chain Sustainability DNA in action: • Planetary Boundaries • Tangible Empathy • Progressive Technology Solution: AB InBev has set a goal of 100% of primary packaging to be returnable or made from majority-recycled content by 2025. Enhanced collaboration with suppliers, as well as with start-ups, inventors and suppliers on a range of innovations, is central to efforts to building a more sustainable and inclusive value chain.
  12. 12. Cisco: Offering a seat at the virtual table Challenge: Creating a more inclusive virtual communication and collaboration experience for customers Solution: Cisco harnessed the power of AI to solve specific inclusion challenges—such as unequal talk time and differing levels of linguistic fluency. As a result, WebEx now allows a meeting host to see who has yet to contribute to a conversation and provides real-time translation in 15 languages Sustainability DNA in action: • Animated Purpose • Human Dignity • Progressive Technology
  13. 13. Ecoware: Championing a gender balanced workforce Challenge: Trying to create a more gender equal workforce in the face of strong cultural resistance Solution: Indian food packaging manufacturer Ecoware clearly prioritized bringing more women into the workforce. They engaged in open conversations with managers to understand and mitigate concerns, and they then developed a set of flexible practices to help women thrive in the workplace Sustainability DNA in action: • Animated Purpose • Open Dialogue • Active Resilience
  14. 14. Most companies need to strengthen their Sustainability DNA *Based on data of 4,000 companies Collective Intelligence Human Connections Average score Human Connections score Collective Intelligence score 52/100 57/100 47/100 On average, companies score 52 out of 100 on the Sustainable Organization Index Companies perform better at listening to their stakeholders They are weaker at turning insights into action Stakeholder Inclusion Emotion & Intuition Mission & Purpose Technology & Innovation Intellect & Insight
  15. 15. Copyright © 2021 Accenture. All rights reserved. A continuous cycle of change to generate value for all stakeholders Sustainable leaders can take actions to strengthen their Sustainability DNA 15 Diagnose Define Develop the strength of your organization’s Sustainability DNA interventions to address areas for development your roadmap to create value while leading with values
  16. 16. Copyright © 2021 Accenture. All rights reserved. 16 Take the Sustainable Organization Rapid Diagnostic to measure your progress and benchmark against peers How strong is your Sustainability DNA? Sustainable Organization Rapid Diagnostic
  17. 17. Copyright © 2021 Accenture. All rights reserved. 17 By embedding stakeholder-centricity at the heart of an organizational transformation, leaders can deliver multi-dimensional value and realize the promise of stakeholder capitalism. Turn responsible values into sustainable outcomes.
  18. 18. Copyright © 2021 Accenture. All rights reserved. 18 Shaping the Sustainable Organization Read the report: accenture.com/sustainableorganization

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