Why sustainability efforts need portfolio management!

Sustainability can be divided into three main dimensions: economic, social and environmental. It is often defined as meeting the present needs without compromising the ability of the future generations to meet theirs.

The challenge for organizations is to create long-term value by taking into account all the previously mentioned dimensions of sustainability. As the stakeholder expectations and regulative demands on business sustainability increase, companies need to act on sustainability.

At first sight, the sustainability landscape can feel complex with the multiple existing frameworks, standards and regulations made for operationalizing the concept of sustainability. (Some examples of well-known frameworks are GRI, SASB, SDGs etc.) The transition towards more sustainable practices and real contribution towards global sustainability requires a holistic approach and involves embedding sustainability throughout the company.

This brings us to a question, how to navigate through this multidimensional sustainability environment? It requires a systemic way of thinking and understanding the linkages between strategy and operations. This is where sustainability becomes relevant in portfolio management. The use of tools (e.g. Thinking Portfolio Sustainability Portfolio) allows the company to have a full vision of the company sustainability. It enables collecting sustainability data in one place and managing sustainability actions and performance. It supports transparency and reporting and brings capabilities for data-based decision-making.

All in all, portfolio management implementation can be an inspiring way to contribute towards a sustainable future.