Sustainable transformation Taking sustainable business forward

Sustainable transformation

Profit and loss

Sustainable business is smart business.The world is changing: resource constraints offer challenges to supply chain organizations; colliding business models encourage marketing departments to rethink the competition. Helping cut through these challenges, sustainability spurs innovation and enables business resiliency. Moving sustainability out of any silos and across operations can pave a prosperous path forward.

Basic Established Advanced Leading

• Focus on public relations • Initiatives focused on

operations• Limited to no

sustainability reporting

• Internal communications promote sustainable thinking

• Early relationship with stakeholders

• Goals established• Developed metrics assess

progress toward goals

• Sustainability-embedded strategic planning

• Regular stakeholder engagement

• Goals aligned with business strategy

• Holistic set of metrics to track ESG1 performance

• Technology supports ESG data management

• Externally report progress toward goals

• Sustainability strategy part of enterprise strategy

• Ongoing and formal stakeholder engagement

• Goals are restorative in nature and science-based

• Holistic metrics track value-chain-wide performance

• Decision-making considers ESG impacts

• External reports meet international standards and are audited by a third party

Moving to the

next level

1 Environmental, Social and Governance

Where do you want your company to be?

Top line

Bottom line

Brand value and trust

Protect and improve reputation

Manage and mitigate risk

Reduce costs

Increase revenue and drive new sources

Profit and loss

Discover Navigate Activate Measure

• Analyze world context• Align purpose and

strategy• Conduct materiality

assessment• Analyze impacts• Perform maturity

assessment • Identify existing

initiatives

• Develop sustainable transformation (ST) platform

• Map stakeholder experience

• Set goals • Simplify and prioritize

initiatives• Build the business case• Leadership commits to

activate platform

• Initiate and launch sprints

• Conduct sprints• Scorecard and measure

sprints• Scale sprints

• Define measurement scope

• Develop effective methods and metrics

• Measure impacts • Monitor performance

and improve results

Foundational analysis to make strategic investment decisions

Sustainability transformation plan and executive support

Sustainable transformation based on sprint outcomes

Measured transformation performance outcomes for reinvestment

Whether sustainability is new to your organization or firmly entrenched, our clients want to get the most benefit from their efforts. How would your organization answer the following:

• Are we making business decisions without understanding all that we impact and that which impacts our operations — global trends, stakeholder concerns, environmental and social results?

• How does our sustainability program support our strategy and activate our purpose?

• Which sustainability risks do we need to address and convert into innovation opportunities?

• Is our sustainability function promoting and executing the right initiatives and are those initiatives yielding the results anticipated? Which initiatives do we need to scale up?

• How do we measure environmental and social impacts — internally and externally? How do we use that information to make good business decisions?

• Are we driving value for our employees, our customers and our shareholders?

• Is our business model adaptable to today's sharing and circular economic models?

Taking sustainable business forward

How EY assists clientsWe bring our accounting and measurement toolkits, strategy resources and change management professionals to take sustainable business forward. Whether your organization is doing a goals refresh post-merger or leadership sees new opportunities for sustainability, our modular approach adapts to your specific needs to help you succeed.

Contact us Thought leadership

Investors, more than ever,are using nonfinancial information to underpin their decisions. Learn what’s driving nonfinancial reporting effectiveness and how it helps create company value.

This paper provides insights on how you can better understand and demonstrate the value of your sustainability programs, including through the use of EY-PRoMO.

Christine HaglerExecutive DirectorAtlanta, GA +1 404 817 5799 chris.hagler@ey.com

Veli IvanovaPrincipalErnst & Young, LLP Denver, CO +1 720 931 4416veli.ivanova@ey.com

Brendan LeBlancPartnerErnst & Young, LLP Boston, MA +1 617 585 1819 brendan.leblanc@ey.com

EY | Assurance | Tax | Transactions | AdvisoryAbout EYEY is a global leader in assurance, tax, transaction and advisory services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities.

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This material has been prepared for general informational purposes only and is not intended to be relied upon as accounting, tax or other professional advice. Please refer to your advisors for specific advice.

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