Global mega trends, material ESG factors and Sustainable business models – The links
Photo by Louis Reed on Unsplash
The global mega trends are impacting all companies, small and big.
The main global mega trends are; Digital transition, Energetic and Environmental transition and Demographic transition. It is key for companies to understand how these trends are impacting the company. These can represent risks and opportunities.
If a company is exposed to a global mega trend and the business is in strong reduction because of this the company does not have a sustainable buiness model.
In addition to this the ESG factor analysis will in detail see how the company is exposed to risks and opportunities within Environment, Social and Governance.
Luckily most companies have a board and a management that is aware of this and that will put in place strategies and action plans to reply to this negative external impact.
But in reality, are they aware? Do they have a systematic approach to this? Can they communicate this appropriately to all stake holders?
We clearly see today a great potential for many companies to improve in this area. Simply because this is not the main focus of smaller companies.
If this is the case in your company, we are here to help you!