可持續(xù)性勢在必行：金融的不可或缺的作用-量化

IBMInstituteforBusinessValue|ResearchInsights

Thesustainability

imperative

Theintegralroleoffinance—quantified

HowIBM

canhelp

Wehelptransformfinanceorganizationsfromimprovingtheefficiencyoftheirfinanceprocessestocreatingsmartfunctionswithintelligentworkflows—capableoffinding,connecting,andanalyzingdatatouncoverdeepinsightsthatcanstrengthendecision-making.Ourfinancialconsultantspartnerwithclientstoadviseandmanageend-to-endprocesses.Tolearnmore,pleasevisit:

/services/

finance-consulting

.

2

Assustainabilitybecomesintegratedwithinorganizations’businessstrategies,CFOsmusttakealeadingrole.

Key

takeaways

Transformationalfinanceleaders

vieworganizationalsustainabilityinvestmentsasapathtoenterprisetransformation.

Theyarerolemodelsforsustainabilityactivitiesinfinanceandaremoreinvolvedinshapingtheirorganization’ssustainabilityagendawithoutspendingsubstantiallymoreonthefinancefunction.

Morethanhalf(53%)of

Transformationalfinanceleaderscontributetobusinesscasesforinitiatives—60%morethantheirpeers.

Theyleadonsustainabilityquantification,with42%measuringphysical,operational,financial,andenviron-mentalrisks,comparedtoaboutaquarteroftheirpeers.

Nearlyhalf(44%)ofTransformational

financeleadersalignincentivesforemployeesontheexecutionof

sustainabilitystrategy.

And38%alignincentivesacrossecosystempartnersastheyencourageaculturethatcanfocusonsustainability.

1

2

3

CFOsustainabilityprioritiesareexpected

tochangedrasticallyasemergingand

complexESGreportingrequirementscall

forgreatertransparency.

Introduction

Sustainabilitytalkisturningintoaction.The2022IBMInstitutefor

BusinessValue(IBV)CEOStudy,withinterviewsfrom3,000CEOs

worldwide,showcasesthedramaticemergenceofsustainabilityonto

themainstreamcorporateagenda.

AlmosthalfofCEOssayincreasingsustainabilityisoneoftheirorganization’s

highestprioritiesinthenexttwotothreeyears—upfromroughlyone-thirdin2021,

anincreaseof37%injustoneyear.1Sustainabilityisthefastestrisingissueonthe

CEOagendaandranksrightbelowcustomerexperienceandinnovation.

Assustainabilitybecomesanintegralpartofanorganization’sbusinessstrategy,

theCFOmusttakealeadingrole.TheCFO’spositionissoimportant,infact,thatthe

UnitedNationshasconvenedaCFOCoalitionfortheSustainableDevelopmentGoals,

recognizingthat“asstewardsoftrillionsofdollarsincorporateinvestments,CFOs

areuniquelypositionedtoreshapethefutureofcorporatefinanceandinvestmentas

acatalystforgrowth,valuecreation,andsocialimpact.”2

CFOprioritiesaroundsustainabilityareexpectedtochangedrasticallyasemerging

andcomplexenvironmental,social,andgovernance(ESG)reportingrequirements

callforgreatertransparency(seePerspective:Evolvingsustainabilitystandardsand

disclosures).These,alongwithinvestorpressuresandconsumerdemands,have

massiveimplicationsforthefinancefunction.CFOsarepoisedtoparticipateintheir

organizations’sustainabilityefforts,addingtheircontributionstothe“planet”aspect

ofthequadruplebottomline—profit,people,planet,andpurpose.

Toexploretheexpandingsustainabilityscopeforfinance,theIBVpartneredwiththe

AmericanProductivityandQualityCenter(APQC)tosurvey1,085seniorfinance

personnel,includingCFOs,financedirectors,comptrollers,andfinancemanagers.

Thisstudyexploredtheroleoffinancewithrespecttosustainabilityandtheactions

thatarebeingtaken.Respondents(“financeleaders”)hadoverallresponsibilityfor

thefinanceorganization’sbusinessprocessesandcouldanswerquestionsrelatedto

strategies,budget,full-timeequivalents(FTEs),andpractices.

4

Perspective

Evolving

sustainability

standardsand

disclosures

–TheInternationalFinancialReportingStandards(IFRS)Foundationannouncedthecreationofanewstandards-settingboard,theInternationalSustainabilityStandardsBoard(ISSB).ISSB’sintentistodeliveraglobalbaselineofsustainability-relateddisclosurestandardsthathelpinvestorsmakeinformeddecisionsbyprovidinginformationaboutcompanies’sustainability-relatedrisksandopportunities.3

–GlobalReportingInitiative(GRI)Standardsfocusontheeconomic,environmental,andsocialimpactsofacompanyinrelationtosustainabledevelopment.4TheIFRSFoundationandGRIhaveannouncedacollaborationagreementunderwhichtheirrespectivestandards-settingboards,theISSBandtheGlobalSustainabilityStandardsBoard(GSSB),willcoordinatetheirworkprogramsandstandards-settingactivities.5

–SustainabilityAccountingStandardsBoard(SASB)standardsfocusonsustainabilityissuesmostlikelytobeconsideredbyinvestorsintheirassessmentsofenterprisevalue,suchasthosethatmightinfluencethefinancialperformanceofthecompany.6

SASBandGRIstandardsaredifferentapproachestomateriality.

–TheValueReportingFoundation(VRF)wasconsolidatedintotheIFRSFoundationinAugust2022.ItfollowsthecommitmentmadeatCOP26toconsolidatestaffandresourcesofleadingglobalsustainabilitydisclosureinitiativestosupporttheIFRSFoundation’sISSBworktodevelopacomprehensiveglobalbaselineofsustainabilitydisclosuresforthecapitalmarkets.TheVRF’sSASBStandardsserveasakeystartingpointforthedevelopmentoftheIFRSSustainabilityDisclosureStandards,whiletheIntegratedReportingFrameworkprovidesconnectivitybetweenfinancialstatementsandsustainability-relatedfinancialdisclosures.7

–CDP(formerlytheCarbonDisclosureProject)providesaglobaldisclosuresystemforcompaniestomanageenvironmentalimpacts.8InNovember2022,USPresidentJoeBiden’sadministrationannouncedthatmajorfederalsupplierswillberequiredtodisclosetheirenvironmentalimpactsthroughCDP.Thisincludespubliclydisclosinggreenhousegasemissions(GHG)andclimate-relatedfinancialrisks,aswellassettingscience-basedGHGreductiontargets.9AndatCOP27,CDPannouncedthatitwillincorporateISSBclimate-relateddisclosuresstandards

intoitsplatform.10

–TheFinancialStabilityBoard’sTaskForceonClimate-RelatedFinancialDisclosures(TCFD)enhancesreportingonclimate-relatedfinancialinformation.11

5

Influences

Consolidates

Complements

Consolidates

Establishes

Sustainabilitystandardsanddisclosures

TCFD

TaskForceon

Climate-Related

Financial

Disclosures

CDSB

ISSB

International

Sustainability

StandardsBoard

IFRS

GRI

Global

Reporting

Initiative

VRF

Climate

Disclosure

StandardsBoard

International

FinancialReporting

StandardsFoundation

ValueReporting

Foundation

Consolidates

CDP

Carbon

Disclosure

Project

SASB

Sustainability

Accounting

StandardsBoard

IR

International

Integrated

ReportingCouncil

5

6

26%

7

17%

47%

10%

47%

10%

17%

AlignmentoffinanceandCEOs

onsustainabilityinvestments

Inoursurvey,weaskedfinanceleaderstocharacterizetheirorganizations’sustain-

abilityinvestmentsusingthesamearchetypesfromtheIBVCEOStudytoenable

role-to-rolecomparisons(see“Studyapproachandmethodology”onpage28).12

SurveyedfinanceleadersgenerallyalignwithCEOsatapproximatelythesamerateon

theintentoftheirorganizations’environmentalsustainabilityinvestments(seeFigure

1).Someorganizationsareusingtheirinvestmentstofundopportunitieswhileothers

viewinvestmentsasacost.Stillothersremainonthesidelines.

FIGURE1

Financeleaders’viewsareconsistentwithCEOs

ontheirorganizations’sustainabilityinvestments.

Assessing

financeleaders

Nosustainability

investmenttodate

AssessingCEOs

15%

26%

Complying

financeleadersInvestmentstocomplywithregulationsandmandates

ComplyingCEOs

29%

Operational

financeleaders

Investmentsin

somecore/noncore

businessareas

OperationalCEOs

43%

Transformational

financeleadersInvestmentsreshapemajoraspectsoftheenterprise

TransformationalCEOs

13%

Q:Whichstatementbestcharacterizesyourorganization’sinvestmentsinenvironmentalsustainabilitytodate?

2022IBVCEOStudy:Q6.Whichofthefollowingstatementsbestcharacterizesyourinvestmentsinsustainabilitytodate?

8

Financeleaderarchetypes

Assessingfinanceleaders:

17%offinanceleadersand15%ofCEOsstate

theirorganizationshavenotyetmadeany

enterprise-wideinvestmentsinsustainability.

Whilesomeareexploringoptions,othershave

noplansatall.

Complyingfinanceleaders:

26%offinanceleadersand29%ofCEOssay

theirorganizations’sustainabilityinvestments

areusedsolelytomeetcomplianceand

regulatoryrequirements.

Operationalfinanceleaders:

47%offinanceleadersand43%ofCEOsview

theirorganizations’sustainabilityinvestments

asabusinessoptimizationopportunity.

Focusedonoperationalimprovementsand

efficiencies,theymaketheseinvestmentsin

coreandnoncorebusinessareas.

Transformationalfinanceleaders:

10%offinanceleadersand13%ofCEOsstate

theirsustainabilityinvestmentsareanavenue

forenterprisetransformation.

Thesefourarchetypesarediscreteandshould

notbeconsideredamaturitymodelwhere

thereisaprogressionacrossarchetypes.

9

TheIBVCEOStudyreportedthatbothTransform-ationalandOperationalCEOsachievebettersustainabilityoutcomesandbetterbusinessperfor-mance,withhigheraverageoperatingmarginsandEBITDAthanAssessingandComplyingCEOs.13

Whenlookingatthefinancefunction’sperformanceacrossthefourfinanceleadergroups,thereisnosignificantdifferenceinthefinancecostasapercentageofrevenues.ComparingTransformationalandOperationalfinanceleaders,theTransform-ationalfinanceleadersarebetteratbusinesspartnering,whichiscriticalforsustainability.Infact,theyspendover10%moretimeondecisionsupport(imaginefourextrahoursaweekperpersononanalysis)andareabletogenerateashort-termcashflowforecast17%morequickly—whichisimportantforproofsofconcept,rapidprototyping,andnewsustainabilityinitiatives.

GiventhatTransformationalCEOssaytheirorganiza-tionshavecreatedandimplementedsustainabilitystrategiesthatpermeatetheenterprise,itisnotsurprisingthattheirfinanceleadersaremuchmoreinvolvedinshapingthesustainabilityagenda.Andthey’redoingsowithoutspendingsubstantiallymoreonthefunction,withnostatisticallysignificantdifferencesbetweenthefourfinanceleadergroupsfortotalcosttoperformthefinancefunctionasapercentageofrevenue.

10

11

Sustainabilityand

theroleoffinance

AutodeskCFODebbieCliffordsummarizedthenecessaryintegrationofsustainability

andfinancethisway:“Sustainabilityworkrequiresalignmentwithfinancialpriorities

suchasESGreporting,investorrelations,capitalmanagement,carbonaccounting,

impactmeasurement,corporatedevelopment,andevenproductdevelopment.”14

Basedonananalysisofsurveyresults,weidentifiedfiveresponsibilitiesthatfinance

leadersneedtoembracetohelptheirorganizationsmakeprogressonsustainability:

1.Leadonquantification

2.Mobilizecapital

3.Enableculturechange

4.Operationalizesustainabilityreporting

5.Embedsustainabilityinfinanceoperations.

Oursurveyfindingsexploreprogressintheseareasamongrespondents.For

comparisonpurposes,weonlysharethedataforTransformational,Operational,

andComplyingfinanceleaderssinceAssessingorganizationshavenotmadeany

sustainabilityinvestments.Transformationalfinanceleadersstandoutacrossthese

fiveresponsibilities,andthereareveryfewdifferencesbetweenOperationaland

Complyingfinanceleaders.

12

Leadonquantification

Quantificationofsustainabilityinitiativesliesattheheartoffinance’sskills.Theabilitytobuildbusinesscasesandtrackperformancehelpstheorganizationprioritizeandassesssustainabilityinitiatives(seeFigure2).Performancemanagementincludestrackingenergy,waterconsumption,materials,recyclables,waste,transportation,GHGemissions,compliance,certifications,andmore.

Italsocoverstheallocationofcarbonbudgetsperbusinessunitaspartoftheannualoperationalplanningprocess.Asaresult,organizationscanachieveanet-zeropathwaywithprogresstrackingagainstcommitmentsaswellasalignmenttointernalallocatedcarbonbudgetstoholdbusinessunitsaccountableandcreateurgencytoact.

Transformationalfinanceleadersstandoutrelativetotheirpeersinestablishingcriteriaforevaluatingsustainabilityinitiatives.

FIGURE2

Financeleadersaretakingseveralsteps

toquantifysustainabilityinitiatives.

53%

33%33%

Contributetobusiness

casesforsustainability

initiatives(suchascost

reduction,newrevenue

streams,riskmitigation)

43%

32%

27%

Supportthebusiness

todeterminerelative

prioritizationofdifferent

sustainabilitygoals

40%

35%

32%

29%

19%19%

TrackROIandperformanceagainstsustainabilitygoals

Establishcriteriafor

assessingbusinesscases

forsustainabilityinitiatives

TransformationalOperationalComplying

Q.Whatroledoesyourfinancefunctionplayinexecutingenterprisesustainabilitystrategy?

13

Surprisingly,nearly90%ofComplying,Operational,andTransformationfinance

leadershaveincorporatedGHGemissionsintofinancialvaluecalculationsfor

businesscasesanddecision-making.MoreTransformationalfinanceleaderstellus

thattheyuseavarietyofmethodsintheseassessments,comparedwiththeirpeers

(seeFigure3).

FIGURE3

Organizationsuseseveralmethodstoincorporate

GHGemissionsintofinancialvaluecalculations.

63%

48%

38%

Internalcarbonpricing

(valuepertonofcarbon

dioxideequivalent)

62%

30%

28%

Externalcarbon

taxrates

57%

38%

32%

Emissionstrading

marketvalues

52%

32%

27%

Offsetmechanism

costs

TransformationalOperationalComplying

Q.Whichmethodsdoesyourorganizationusetoincorporategreenhousegasemissionsintofinancialvaluecalculationsforbusinesscases,decision-making,andsimilar?

14

Casestudy

DeutschePost

DHLGroup

Measuring,tracking,andcontrollingGHGemissions

throughcarbonaccounting15

DeutschePostDHLGroupistheworld’slargestlogisticscompany.Itisworkingtowardascience-basedtargetandwillinvestsignificantlyinclimate-neutrallogisticsby2030.Operationaltargetshavebeensetforthatyear;forexample,60%ofdeliveryvehiclesbeingelectrified,andmorethan30%offuelrequirementsinaviationandlinehaulbeingcoveredbysustainablefuels.Toachieveitstargets,thecompanymeasures,tracks,andcontrolsitsGHGemissionsthroughcarbonaccounting.Theideaistotreatcarbonlikeacost,optimizingitinthesamewayasthecompanywouldforfinancialcosts,bybreakingdownandanalyzing“spending”usingfinancemethodologies.

Thecompany’scarbonaccountingteamarosedirectlyfromitsfinancedepartmentwiththeanalyticalmindset,thenecessaryskills,andtheinfrastructuretocollectdataacrossaglobalbusiness.Acarbonaccountingmodelwasdevelopedtoprovideaclearfootprintoftheentireorganization.Theteamtracksandmonitorsprogress,preparesreporting,anddiscussesresultswithmanagement.Theyareinclosecollaborationwiththededicated“cleanoperations”teamwithinthecorporatestrategydepartment,whichisresponsiblefordevelopingthemeasuresbywhichthecompanyreducesemissions.Thisincludestechnologicalgoalsandday-to-daybusinessdecisions—forexample,providingtoolsandinformationtodispatcherssotheycanoptimizethedeliveryrouteorseeataglancewhichpartnersoperatethemostefficientaircraft.

15

Mobilizecapital

Financeishelpingorganizationsobtainsustainablefinancingandallocateinvestmentstotheirsustain-abilityinitiatives(seeFigure4).Forexample,financeprofessionalscanprovidethenecessaryunderstandingofgreenbondsandtheimpactofsustainabilityoncreditandinsurance.Anorganiza-tion’ssustainabilitydisclosuresareimportanttoinvestorstounderstandtheimpactofsustainabilityissuesontheentity’sperformance,risks,andlong-termgrowthprospects.Infact,recentIBVresearchfoundthatnearlytwointhreepersonalinvestorsseeclimateriskandsustainabilityaskeyfactorsthatwillinfluencetheperformanceoftheirportfolios.16

Financealsoneedstoquantifytheimpactofsustain-abilityinitiativesonemployeeretention,theabilitytoraisecapitaltofinanceallbusinessactivity,andcustomerloyalty/retention.MoreTransformationalfinanceleadersarecommunicatingthesetypesofvaluetoinvestors.

Beyondfinancialimpact,sustainabilitycreatesnon-financialbenefitsfortheorganization’sbrand.Thesecouldincludebrandrecall,brandsentiment,NetPromoterScore,andshareofvoice.Again,moreTransformationalfinanceleadershaveidentifiedthesetypesofbenefitstohelptheirorganizations.

FIGURE4

Financehelpsorganizationsmobilizecapital

forsustainabilityinitiatives.

49%

21%

19%

Communicatesustainabilityprogresstotheinvestorcommunity

47%

36%

32%

Identifynewsourcesoffinance(suchasgreenbond,sustainability-basedloan)tofundsustainabilityinitiatives

42%

25%

23%

Determinenon-financial

benefitsofsustainability

initiatives(suchasbrand

impact)

TransformationalOperationalComplying

Q.Whatroledoesyourfinancefunctionplayinexecutingenterprisesustainabilitystrategy?

16

Casestudy

OlamAgri

Drivingimpactwiththesustainabilityfinanceteam17

OlamAgriisagloballeaderinfood,feed,andfiber.Asoneofthefoodindustry’slargestcompanies,itisfocusedonenablingthe17UnitedNationsSustainableDevelopmentGoalsandhasestablishedaclearpurposetoenablesustainabledevelopment.

Adedicatedsustainabilityfinanceteamprovidestheinformationanddecision-makingtoolstosupportOlam’svisionandstrategy.Theteamconsistsoffinance,accountancy,andbusiness-qualifiedemployees,andcollaboratesextensivelywithotherfunctionsinOlam,includingthesustain-abilityandbusinessteams.

ThesustainabilityfinanceteamleadsonESGreportingtomeettherequire-

mentsofinvestors,regulators,andratingsagencies.Ithasbroughtfinance

andaccounting’sculture,mindset,andskillsettomeasuring,quantifying,

andreportingintangiblevaluethatisnotcapturedinfinancialreporting.

Acommondataplatformhasbeencreatedtodriveinternaldecisionsand

externalreporting.

Olamusesmulticapitalaccountingtoidentifymoresustainablestrategies

foritshighest-impactissuesrelatedtohuman,natural,andsocialcapital.

Thisapproachinformsbusinessdecisionstodrivesustainablepractices

andfinancialoutcomes.Thesustainabilityfinanceteamsupportsthe

developmentofitsmulticapitalmethodologiesandisthecenterof

excellenceforcapitalaccountingwithintheorganization.

17

Enableculturechange

Financehelpscultivateaculturefocusedonsustain-abilitythroughalignedincentives(seeFigure5).Theseapplytobothemployeesandpartnersandhelpdriveexecutionofsustainabilityactionitems.Ecosystempartnershipsareimportanttosustainabilitybecausesolvingsocialandenvironmentalproblemsdemandsstrategiccollaboration.Forexample,financecancoordinateandalignrelevantdataandmetricswithpartnerstotracethecarbonfootprintoftheorganiza-tion’sproductsfromsuppliertoeventualconsumertoaccountforscope3(indirectvaluechain)emissions.

FIGURE5

Financehelpstoalignincentivestoencourage

aculturefocusedonsustainability.

44%

38%

28%

26%

23%23%

Alignincentivesacrossecosystempartners

Createincentivestoalign

employeeswithexecutionof

enterprisesustainability

strategy

TransformationalOperationalComplying

Q.Whatroledoesyourfinancefunctionplayinexecutingenterprisesustainabilitystrategy?

18

Casestudy

Unilever

Respondingtothechallengeofplastics18

Unileverisamultinationalconsumergoodscompany.Thecompany

committedtodesigning100%ofitsplasticpackagingtobefullyreusable,

recyclable,orcompostableby2025.Alsoby2025,Unilevercommittedto

increasingtherecycledplasticcontentinitsownpackagingtoatleast25%,

tohalvingtheamountofvirginplasticusedinpackaging,andtocollecting

andprocessingmoreplasticpackagingthanthecompanysells.

FinanceplaysaroleintwokeyareasofUnilever’splasticagenda:reporting

andembeddingplasticconsiderationsintodecision-making.

Inreporting,financecreatedametricsworkinggroupresponsibleforcommu-nicatingsustainabilitymetrics,includingthoseonplastic.Thisgroupconsistsofseniorleadersfromthefinanceteam,thesustainabilityreportingteam,andthedataandanalyticsteam.Otherfunctionalteams,suchasthesupplychainteam,participatewhenneeded.Inaddition,financeassessesthefinancialriskthatplasticposes,sharestheresultsacrossthebusinesstosupportdecision-making,andfeedsitintoannualreportdisclosures.

Withrespecttoembeddingplasticconsiderationsindecision-making,thefinanceteamischangingthebusinesscaseandcapitalproposalprocessesfordevelopingproducts.Specifically,financeisresponsiblefortaskssuchassensitivityanalysisforincludingpostconsumerresin(lower-impactplastic)inproductsandcostingproductredesigns.FinanceworkedwithIT,dataandanalytics,anddivisionalbusinessteamstocreateamethodologyandatool—the“Eco-designtool”—thatdivisionscanusetoanalyzethewastefootprintofnewproducts,newproductdesigns,orproductformulations.

19

Operationalize

sustainabilityreporting

Sustainabilityreportinghelpsprovidetransparencyontheenterprise’sperformanceinsupportingitssustainabilitygoalsandcommitments.Thechallenge,however,istherapidlychanginglandscapeofregulatoryandmarketrequirementsrelatedtosustainabilityreporting.Withrelativelylittlemandatoryreportingcurrently,manyorganizationsaretryingtoshowalignmentwithmorethanoneoftheever-evolvingstandardsbywayofvoluntaryreporting.

Forfinance,sustainabilityreportingrequiresteamingacrosstheenterprisetoselecttherightmetrics,quantifyrisks,andinformbothexternalandinternalstakeholders.Withthesepartnershipsinplace,financecanhelpmanagetheinherentuncertaintyaboutsustainabilityandidentifytherisksoffailingtoact.MoreTransformationalfinanceleaderstaketheseactionscomparedtotheirpeers(seeFigure6).

FIGURE6

Financeleadersarehelpingoperationalize

sustainabilityreporting.

42%

37%

31%

Identifynewreporting

metricsthatreflect

sustainabilitygoals

42%

26%

24%

Quantifyphysical,operational,financial,andenvironmentalrisks

39%

28%

23%

Contributetonarrative

disclosureson

sustainabilityinexternal

reporting

TransformationalOperationalComplying

Q.Whatroledoesyourfinancefunctionplayinexecutingenterprisesustainabilitystrategy?

Casestudy

Celestica

Transformingsustainabilityreporting19

Celesticaisaleaderindesign,manufacturing,hardwareplatform,andsupplychainsolutions.Fortheglobalmanufacturingindustry,ESGreportingcanbecomplicatedandcumbersomegiventheextensiveportfolioofinternationalsitesrequiringmonitoringandauditing.GlobaldataformanyofCelestica’sfacilitieswasgatheredandcapturedinspreadsheets,wherecalculationshadtobedonemanually.

Softwarehashelpedstreamlinetheprocess.Celesticacannowcompileandtransformdataintousableoutputsandhelpeliminateerrorsfrommanualdataentry.Automationofcomplexcalculationsandreportingproducesfinance-grade,auditabledata.

20

Casestudy

RoyalDSM

ManagingESG-relatedrisksandopportunities20

RoyalDSMisaglobalhealth,nutrition,and

biosciencecompany.Itsleadersrecognizethe

importanceofembeddingESGrisksintoitsrisk

managementframework.

TosupportthereductionofGHGemissions,the

financefunctionin2016adjustedthecapital

expenditureprocedureandmadeitmandatoryto

includeaninternalcarbonpriceinallbusinesscases

forlargeinvestmentprojects.Followingtheupdate

ofthestrategyandtargetsin2018,alllarge

investmentprojectsnowneedtobeGHGneutralor

better.Theadditionalcostsand/orinvestments

neededtooffsetanemissionsincreasemustbe

includedinthebusinesscase.Tointegratethe

aspectofGHGemissionsinday-to-daydecision-

making,internalcarbonpricingisnowapplicable

forthemanagerialP&Lstatementsthatareusedto

steerthebusiness.

21

Embedsustainability

infinanceoperations

Todifferentdegrees,eachofthethreegroups(Complying,Operational,andTransformationalfinanceleaders)hastakenactiontoreducetheGHGemissionsofthefinancefunction.Byputtingtheirownhouseinorder,thesegroupsgeneratecredibilitywhencollaboratingonsustainabilityacrossthebusiness.Specifically,respondentstellustheyarechanginghowtheyoperatetoincludesustainabilityintheirdecision-makingassociatedwiththefunction’sofficeenvironmentandtechnologychoices(seeFigure7).

Acrossthethreegroups,theadoptionofreducingemissionsfrombuildings,trackingemissionsspecifictothefinancefunction,andpursuingnet-zeroemissionsfromfinancetechnologysolutionsare

verysimilar.TheseactionsareeasiertotakeandperhapslesspowerfulintheircontributionstoreducingGHGemissions,buttheyareagoodstartforfinanceorgan