How to make the business case for sustainability in finance?
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To make the business case for sustainability in finance, it is crucial to integrate sustainability into financial decision-making processes. This can be achieved by considering corporate sustainability in capital budgeting decisions , measuring sustainability risks, and incorporating ESG aspects into financial strategies . Executives should focus on long-term perspectives by adopting longer-term executive compensation plans, flexible financial decision-making models, and longer-term financial reporting to embed environmental and sustainability factors into the decision-making framework . Sustainable finance practices, such as sustainable marketing and sustainable business model innovation, can help organizations enhance their image, attract more customers, and drive sustainable profits within the ESG framework . By aligning financial decisions with sustainability goals, businesses can not only improve their performance but also gain investor confidence and public trust.
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| Papers (4) | Insight |
|---|---|
| The business case for sustainability in finance can be made through cost reduction, revenue enhancement, risk management, and valuing intangible assets in long-term decision-making frameworks. | |
20 Jun 2023 | The Pos-FSBC tool calculates financial value and sustainability impact of a business model innovation, aiding in making a strong business case for sustainability in finance. |
| Financial management plays a crucial role in integrating sustainability into decision-making processes, such as capital budgeting, to measure and mitigate sustainability risks, thus making a strong business case for sustainability in finance. | |
| Integrating ESG aspects in financial strategies enhances performance, reduces risks, and builds investor confidence, making a strong business case for sustainability in finance. |
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