Sustainability

For a business to be sustainable, it must provide both a return to investors but also not be judged to bringing harm to society

Today's society demands that businesses provide positive outcomes for the community (over and above the pure economic contribution that business makes such as taxes paid and jobs provided) and will move against those that do not: eg. Asbestos, tuna fishing, Nike shoes, the mining industry).

The two axes are related because embedding business practice that provides a "return to the community" also improves returns to shareholders. In today’s market, the PE ratio is driven by "hygiene factors" rather than pure profit performance; the sounder the business' reputation, the higher the PE, the higher the share price. "Hygiene factors" include:

• Transparency
• Innovation
• Ability to attract and retain quality people
• Governance
• Strategic clarity

Moreover, cause-related marketing, properly tailored to the product or brand, can build greater consumer loyalty and help maintain market share. Addressing community concerns often reduces risk and operating cost. A business focused on sustainable business practices has the capability to attract and retain higher quality talent.

Jacaranda can help senior management review business operations, determine where there is potential to bring harm to society, recommend changes that will be in the business' interest (eg. reducing waste, adding value, motivating employees), and develop the implementation strategy (including internal and external communications).

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Performance Gap

The CEOs of some of the world's top companies are aware of a performance gap in their own operations, how good is your company?

• Do you have a sustainable business strategy?
• How well is it being implemented (what barriers are you facing)?
• Do your employees "get it"?
• Do your consumers understand it?
• Do your suppliers help you achieve it?
• Do your investors applaud it?

Jacaranda will work with you to be able to answer each of these questions confidently and positively.

We do this by helping you to:

• Set out what are the business risks and opportunities
• Benchmark your position against competitors
• Incorporate sustainability actions into your strategy and action plans
• Generate a policy position and communicate it
• Where necessary, develop constructive advocacy
• Map who your important stakeholders are and then help you build relationships with them
• Support any organisational change needed

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