In the eyes of non-profit corporate sustainability group Ceres, environmental and social sustainability issues are material “balance sheet” issues.
Think about that for a second. This mindset calls for a full accounting of everything that goes into a business’ profit and loss statement. I’m talking about the real one, with the numbers. Not just the sidebar Corporate Responsibility brochure.
For businesses in all sectors of the economy, sustainability is a strategy for building long-term shareholder value, managing environmental and social risks, and improving competitiveness. Environmental and social sustainability issues are material “balance sheet” issues. They pose risks and present opportunities that will drive the success of corporations.
And if this is case, the logical conclusion is to link compensation with sustainability results.
Ceres Vice President Andrea Moffett lays out the case for this in her Apr. 24 blog post: It’s Time to Link Compensation With Sustainability