2016 has
officially kicked off. We expect that this year is going to be a great year for
organisations that invest in sustainability and corporate responsibility. From
ambitious new targets to trending tools: read on for our predictions for 2016.
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COP21
The
international climate change conference held in December 2015, COP21, has led
to an international agreement that aims to limit global warming to 2 °C. In
response, governments will likely start formulating policy measures on a
national or even regional scale. We expect that more stringent energy targets
will be set in 2016, demanding more from businesses in the near future. See our
December blog for what your business
can expect from the COP21 outcome.
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The
Netherlands as EU president
The
Netherlands holds the presidency of the European Union from January 1 to June
30, 2016. Innovation and a forward-looking climate and energy policy are just a
few of the topics that the Netherlands wants to focus on during its presidency[1].
The aim is to create a more future-proof model for sustainable growth. This
will provide opportunities for business to benefit from this momentum by
jumping on the bandwagon of sustainable innovation and energy management.
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Sustainable
Development Goals
In 2015 the
United Nations updated their Sustainable Development Goals (SDG). These human
development targets have been renewed for the 2015-2030 timeframe. In particular
in Belgium, the SDGs are increasingly being used to frame sustainability
efforts. We expect that the popularity of the SDGs will increase even further
in 2016 and that they will also make their entry into the Dutch CSR arena.
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IIRC
- Integrated reporting and strategies
Integrated
Reporting is gaining ground in corporate reporting. In a relatively short
period it has changed the reporting landscape and connected the report more closely
to the company that is behind the report. It has also become a starting point
for integrating sustainability within the core business strategy of
organisations. We believe that in 2016 integrated reporting will become the
standard for how most businesses communicate their (non-financial) performance.
We expect more value chain reporting, more integrated and interconnected information,
and more forward looking and strategic reporting.
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Impact
Measurement
An
important element of integrated reporting is the focus on creating value and
having a positive impact. More organisations will be judged by their
stakeholders on the value they create, in particular social and environmental
value. As already described in our November
Blog, insights into the impact of your organisation can create substantial
benefits for business. In 2016, organisations will continue to develop and use various
methods in order to map the value they create for society. 2016 will be the
year in which we expect several more ‘Puma-cases’ of impact monetization and
environmental/social profit and losses.
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Big
Hairy Audacious Goal
Companies taking sustainability
serious tend to set mega-targets or ‘Big Hairy Audacious Goals’. We expect that
more companies will formulate BHAGs and follow frontrunners such as Unilever
and Philips in developing a bold vision statement. In our client base, we see
many companies considering such a target. Most organisations see a BHAG as the
most inspirational means to clarify their goal. It is not important whether you
accomplish the goal or not, it is more of a unifying focal point for a company’s
effort. It is a true differentiator and lifts your external communication,
marketing and reporting to a next level.
Conclusion
2016 has something sustainable in store for you! With all these trends for 2016, it appears that sustainability will continue its trajectory of becoming a more mainstream element of doing buisness. This is a good development for society at large, but it will become more challenging to stand out from the crowd. Luckily, there are numerous methods and tools that you can use to tailor your sustainability strategy. Be it inspiring BHAGs or outstanding sustainability performance. Use this to your advantage and try to keep in mind the following message: distinguish your business from the others - be a leader in something!
Nick de Ruiter is a partner at Sustainalize. He is a specialist in CSR strategy setting and performance monitoring.
Mart van Kuijk & Marcella van Steenbergen are consultants at Sustainalize. They specilize in CSR reporting and impact measurement and -monetization.
