The practice of the developed world shows that both private and public companies are shifting to sustainable business management models in which commercial decisions are made based on financial and non-financial indicators that manage long-term business risks. Non-financial indicators of business management are usually divided into environmental, social and economic, the integration of which into the traditional business management system is promoted by European Union regulation, Organization for Economic Co-operation and Development, United Nations and international business associations, as well as developing sustainability culture and direct partners and supply chain sustainability audits. There are several highly reputable sustainability accounting models and their platforms operating internationally.
Voitura Group currently is running a project for the development and implementation of a moderation and management model for the refinement of sustainable business strategic directions, identifying environmental, social and good governance factors relevant to the company’s activities, creating a sustainable business management system that meets European Union and international sustainable business practices and meet the sustainability standards and requirements already set by customers. The project should be over in 2021 second quarter.
Preliminarily, this would includes the following steps:
1. Strengthened company vision and business strategy: sustainability combines separate business areas into a single system, allows to see the synergy of financial and non-financial indicators, manage legal, environmental, social and reputational risks, gain a competitive advantage in the operating markets.
2. Reduced regulatory risk: A proactive corporate sustainability policy prepares the company for increasing sustainability regulation in the European Union (the new EU Framework for Sustainable Financial Management).
3. Reduced environmental and social risks: proactive company policy and constant control reduce business risks in the areas of environment, employees and community relations – eliminates or reduces conflicts with regulators, employees, local business community.
4. Increased employee loyalty and efficiency: the company meets the values of emploees, effective internal value motivation takes place.
5. Enhanced brand reputation: The company gains a reputation for transparency and trust.
6. Increased availability of green capital: Sustainable investment managers are increasingly demanding transparency and disclosure of non-financial information, and the EU’s Sustainable Finance Framework (A European Green Deal) has already been adopted and is being implemented.
7. More favorable business insurance conditions: Transparency and a reputation for trust lead to better business insurance conditions, and EU insurance companies will be subject to stronger sustainability requirements for the implementation of the fiduciary duty (the new EU Framework for Sustainable Financial Management).
8. Increased operational efficiency: the company professionally coordinates financial and non-financial performance indicators, sees and manages non-financial risks in a timely manner, avoids conflicts with regulators, employees and the local business community, saves time and costs.
9. Increased process efficiency: detailed use of resources, reduction of physical waste and CO2e emissions in stages, implementation of circular processes using recycled materials and optimization of unavoidable environmental costs.
10. Strengthened relations with business stakeholders: Professional stakeholder dialogue provides a long-term platform for trust and reconciliation.