According to Warhurst, investors overlook the link between sustainability and risk management because sustainability driven companies don’t communicate their efforts in this field sufficiently. In other words: sustainability reports don’t speak the investors language. If non-financial efforts would be formulated in terms of risk management, (potential) shareholders would be more likely to invest in these companies.
TNT, which is currently on top of the Dow Jones Sustainability Index, acknowledges in the person of CEO Peter Bakker the importance of communicating CSR efforts effectively. Like Warhurst, he points to the fact that saving the planet and the management of risks are becoming one and the same thing. At TNT, CSR has become an integral part of the business.
Since 2006, Finch & Beak helps TNT to realize its sustainability goals. For example, Finch & Beak has conducted research on the improvement of the effectiveness of TNT’s sustainability program. Furthermore, Finch & Beak has developed a case study for IMD in Lausanne on leadership in corporate social responsibility. The case discusses in detail the cooperation between TNT and the World Food Programme and the development of the Moving the World Program. For more information you can go to the IMD website.
Source: Business Week