Sustaining Values

10 July, 2017

Sustainable company management increases the market value of your company. This is not simply a matter of "going green", but rather ensuring the long-term economic success of your company. By dealing with your staff, customers, suppliers and natural resources in a responsible manner, you generate new value and strengthen your company's future viability.

Do you know...

  • ...what it costs you if employees are unsatisfied and unmotivated?
  • ...the value of your company's reputation?
  • much added value your social commitment generates?
  • ...what effects the new CSR Directive has on your company?
  • your business model facilitates sustainable development goals?
  • ...the degree to which your business model is dependent on natural resources?
  • ...the contribution that your customers' satisfaction makes towards your success?
  • ...what savings your company can achieve by reducing its CO2 footprint?

All of these non-financial factors are quantifiable and of substantial importance to commercial success because a company's value is heavily influenced by non-financial factors:

Sustaining values – a concept for integrated sustainability

Having a complete overview of all financial and non-financial indicators makes it possible to gain a comprehensive understanding of a company's opportunities and risks. This provides the basis for making well-founded business decisions in a volatile climate so that you can ensure the future viability of your business model and gain the capital market's confidence. Sustaining values are the solution. With this holistic approach, a company's non-financial value drivers are integrated into its strategy and management while the effects of these drivers on the company's financial success are measured and demonstrated. When implemented in practice, it affects all business units. This requires a change in thinking throughout the entire company.

Implementing this integrated sustainability concept starts with the adjusting of your company's strategic orientation. As part of this process, due account is taken of the non-financial value drivers that are of material importance to the development of your business model. Furthermore, it is necessary to use the appropriate evaluation methods in order to determine the effects of these value drivers on financial success. In this context, the security and reliability of data also play a pivotal role. If the management and evaluation of non-financial value drivers are reflected in reports and are ascertained in a reliable manner, the reporting system gains additional credibility for the capital market. If these requirements are met, then our approach contributes towards fulfilling the expectations of stakeholders and sustainably increasing the company's value.

The advantages: better performance and flexibility

  • Better performance: Studies demonstrate that share prices perform better if companies have embedded sustainability in their strategy and also communicate this to the capital market.
  • Greater flexibility: Nowadays, companies have to be capable of identifying and managing their new value drivers within in the shortest times possible. Only by doing so they will be be able to withstand the competition. Digitalization and the energy revolution are examples of megatrends that are changing the entire business models of companies.
  • Greater resilience: Companies that conduct their business sustainably are tougher in the face of disruptive changes and risks on the market.

Companies that have their non-financial value drivers under control and communicate them perform significantly better.

Studies by the Harvard Business School have shown that, in a holistic context, the management of financial and non-financial value drivers is in the interests of the equity providers.

Integrated thinking – the reliable foundation for your future

PwC's experts will assist you in building a sustainable form of corporate management in which non-financial value drivers are taken into due account and integrated accordingly. Working together with you, our experienced experts will develop an "Integrated Thinking" model that is tailor-made for your company and stakeholders.

Contact us

Hendrik Fink

Hendrik Fink

Leiter Sustainability Services, PwC Germany

Tel: +49 89 5790-5535

Nicolette Behncke

Nicolette Behncke

Partnerin, Sustainability Services, PwC Germany

Tel: +49 69 9585-3080

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