Cost in sustainability is a major issue and a its a job of Chief Financial Officer to tackle this.
The best tool available is Triple Bottom Line (TBL)
Triple Bottom Line is an approach which integrates Economy, Social and Environmental.
A company needs to shift from only profit focused missions to an improved TBL focus. This includes investments in green technology and talent retention. Any company can leverage all three of these indices to increase growth.
According to a McKinsey report, revenue for a company focusing on sustainable targets increases as customers are willing to pay about 5-10% more for their products. It also helps in reducing operational costs in terms of logistics and manufacturing.
Thus the job of CFO is to encourage new measures for performance tracking that embeds all three aspects of TBL. Incentives should be disbursed accordingly to make a long-term effort in sustainability.
Want to know more about sustainability?
Check out https://b-2002052-arohibhatt.blogspot.com/2020/08/future-successfactor-sustainability.html
Good read.
ReplyDeleteI want to know more about TBL after this article. Thank you author. This is new for me.��
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