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Shaping the Sustainable Organization | Accenture

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Accenture helps companies unlock the business and environmental value of organizational sustainability by strengthening their sustainability DNA. Read more.

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Shaping the Sustainable Organization | Accenture

  1. 1. From insights to action, the path to extraordinary value starts here. Shaping the Sustainable Organization How responsible leaders create lasting value and equitable impact for all stakeholders In collaboration with the World Economic Forum
  2. 2. Operating sustainably is not an option. It’s a business imperative. Leaders are under intense pressure to build sustainable organizations that deliver financial value and societal and equitable impact for all stakeholders. The COVID-19 pandemic has intensified the challenge. Sources: Accenture Future of Work Study; Accenture Covid-19 Consumer Pulse Study; Principles for Responsible Investment. Employees Consumers Investors 65% 66% 28% believe organizations should be responsible for leaving their people "net better off" through work plan to make more sustainable or ethical purchases over the next six months increase in investor signatories in 2020 to the UN’s Principles for Responsible Investment Stakeholders are more demanding:
  3. 3. Executives are keen to deliver for all stakeholders The pandemic increased the onus on leadership teams to reimagine how they assess their performance and to develop deeper, two- way relationships with stakeholders. Sustainable leaders are taking action. Source: Accenture Global CXO Study; October 2020 73% 67% 30% have developed an action plan for adopting and scaling sustainable practices: Percentage of executives who... across the entire organization for some business units identify becoming a truly sustainable and responsible business as a top priority:
  4. 4. Change starts with the Five Elements of Responsible Leadership In our previous report, Seeking New Leadership, we identified five leadership qualities that executives need to guide their companies in the decade ahead. However, these five elements are only the start. Emotion & Intuition Instinct Humility Compassion Intellect & Insight Data-to-knowledge Critical thinking Continuous learning Mission & Purpose Integrity System thinking Sensemaking Stakeholder Inclusion Trust Accountability Impact Technology & Innovation Tech vision Responsive innovation Creativity
  5. 5. Copyright © 2021 Accenture. All rights reserved. 5 A business and operating model transformation is necessary to become a truly sustainable organization. But the pre-requisite is to embed stakeholder-centricity into day-to-day decision-making.
  6. 6. Three barriers stand in the way of creating stakeholder value Organizations fail to fully understand stakeholders’ needs and desires Leadership teams struggle to embed stakeholders’ needs into decision- making processes Leaders are unable to cultivate wider ownership for operating sustainably 01. Relationships 02. Insight 03. Shared ownership
  7. 7. Sustainability DNA addresses these barriers by driving three key behavioral changes Strong, symbiotic relationships with stakeholders that build understanding of what constitutes value across the ecosystem Specific decision- making mechanisms that transform stakeholder needs and desires into action Stakeholder value creation becomes an expectation across the organization 01. Human Connections 02. Collective Intelligence 03. Accountability at All Levels
  8. 8. Copyright © 2021 Accenture. All rights reserved. 8 Decoding Sustainability DNA “Leadership teams should build organizations that delegitimize irresponsible behavior – instead, making responsible and sustainable leadership the norm across their business.” Gianpiero Petriglieri, INSEAD Professor Practices, systems and processes to convert responsible leaders’ goals and values into tangible outcomes through stakeholder-centric behavioral change.
  9. 9. Sustainability DNA delivers behavioral change throughout the organization It comprises 21 practices, categorized into 10 enablers, that drive human connections, collective intelligence and accountability at all levels Stakeholder Inclusion Emotion & Intuition Mission & Purpose Technology & Innovation Intellect & Insight Analyzes inputs, impacts and risks across multiple time horizons → Performance & Reporting → Risk Management Champions inclusion, diversity & equality inside the organization and beyond → Equal Workplace Opportunity → Human Development Prepares people for the future world of work through targeted learning and development → Employee Growth → Ecosystem Development Harnesses emerging tech to solve problems without creating harmful side effects → Data Privacy & Consumer Protection → Environmental & Social Innovation Elevates good citizenship of Earth's natural and human environment → Sustainability Stewardship → Sustainable Operations Takes a systematic approach to upholding and enhancing business ethics → Environmental & Quality Standards → Competition & Conduct → Labor Standards Upholds the rights and responsibilities of all stakeholders → Stakeholder Welfare → Environmental Targets Is consultative and listening by default → Feedback Mechanisms → Comprehensive Communication Shapes workplaces and stakeholder experience to build mental and physical resilience → Progressive Working Practices → Health & Well-being Embeds the organization’s purpose in all activity → Executive Compensation → Transparency & Accountability Accountability At All Levels → Practices Collective Intelligence Human Connections Click to see the enablers in action at accenture.com
  10. 10. Strong Sustainability DNA is associated with higher value and a lasting positive impact on society and the environment Source: Accenture analysis; Arabesque S-Ray; S&P Capital IQ Organizations with the most deeply embedded Sustainability DNA outperform peers by 21% on both profitability, and positive environmental and societal outcomes 21% higher EBITDA margin (+3.4 percentage points) 21% higher sustainability performance (+9.2 index points)
  11. 11. Most companies need to strengthen their Sustainability DNA *Based on data of 4,000 companies Collective Intelligence Human Connections Stakeholder Inclusion Emotion & Intuition Mission & Purpose Technology & Innovation Intellect & Insight Average score Human Connections score Collective Intelligence score 52/100 57/100 47/100 On average, companies score 52 out of 100 on the Sustainable Organization Index Companies perform better at listening to their stakeholders They are weaker at turning insights into action
  12. 12. AB InBev: Innovating to close the loop Challenge: Reducing waste throughout the supply chain Sustainability DNA in action: • Planetary Boundaries • Tangible Empathy • Progressive Technology Solution: AB InBev has set a goal of 100% of primary packaging to be returnable or made from majority-recycled content by 2025. Enhanced collaboration with suppliers, as well as with start-ups, inventors and suppliers on a range of innovations, is central to efforts to building a more sustainable and inclusive value chain.
  13. 13. Cisco: Offering a seat at the virtual table Challenge: Creating a more inclusive virtual communication and collaboration experience for customers Solution: Cisco harnessed the power of AI to solve specific inclusion challenges—such as unequal talk time and differing levels of linguistic fluency. As a result, WebEx now allows a meeting host to see who has yet to contribute to a conversation and provides real-time translation in 15 languages Sustainability DNA in action: • Animated Purpose • Human Dignity • Progressive Technology
  14. 14. Ecoware: Championing a gender balanced workforce Challenge: Trying to create a more gender equal workforce in the face of strong cultural resistance Solution: Indian food packaging manufacturer Ecoware clearly prioritized bringing more women into the workforce. They engaged in open conversations with managers to understand and mitigate concerns, and they then developed a set of flexible practices to help women thrive in the workplace Sustainability DNA in action: • Animated Purpose • Open Dialogue • Active Resilience
  15. 15. Copyright © 2021 Accenture. All rights reserved. A continuous cycle of change to generate value for all stakeholders Sustainable leaders can take actions to strengthen their Sustainability DNA 15 Diagnose Define Develop the strength of your organization’s Sustainability DNA interventions to address areas for development your roadmap to create value while leading with values Copyright © 2021 Accenture. All rights reserved.
  16. 16. Copyright © 2021 Accenture. All rights reserved. 16 Take the Sustainable Organization Rapid Diagnostic to measure your progress and benchmark against peers How strong is your Sustainability DNA? Sustainable Organization Rapid Diagnostic Copyright © 2021 Accenture. All rights reserved.
  17. 17. Copyright © 2021 Accenture. All rights reserved. 17 Shaping the Sustainable Organization Read the report: accenture.com/sustainableorganization
  • SaikumarKundum

    Oct. 17, 2021
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    Oct. 1, 2021
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    Sep. 29, 2021
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Accenture helps companies unlock the business and environmental value of organizational sustainability by strengthening their sustainability DNA. Read more.

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