7 RESILIENCE LEVERS
Business Model &
Workforce Transformation
Efficiency and effectiveness:
Driving change across the business cycle
7 RESILIENCE LEVERS
Operational &
Financial Resilience
Creative destruction:
Building resilience from the balance sheet up
7 RESILIENCE LEVERS
Digital Trust
& Ecosystems
A new world of threats:
Managing cybersecurity risk in changing times
7 RESILIENCE LEVERS
Escalation Planning
& Response
The Anatomy of a Crisis:
The right approach to crisis preparedness is a holistic one
7 RESILIENCE LEVERS
Remediation &
Dispute Resolution
Investigations and disputes in a post-COVID world:
When will the storm hit?
7 RESILIENCE LEVERS
Government &
Stakeholder Relations
Strength in leadership:
The new rules of stakeholder engagement
7 RESILIENCE LEVERS
Economic Impact
& Sustainability
Resilience and Sustainability:
Two sides of the same coin?
7 RESILIENCE LEVERS
Real-Time Data
Analytics
Data is the lifeblood of resilient businesses

With environmental, social and
governance (ESG) issues now
strongly influencing a business’s
financial performance, sustainability
must be at the heart of the
post-COVID-19 resilience agenda.

Environmental, social and governance (ESG) concerns often used to be treated as marginal issues. However, companies now increasingly see them as central business priorities. According to FTI Consulting’s Resilience BarometerTM, published in January 2020, 96% of companies were under pressure to improve their ESG offerings, with 34% under extreme pressure.

of business leaders report that their companies are under pressure to improve their ESG and sustainability offerings

Employee diversity

is the #1 CSR issue reported
by business leaders

In particular, investors’ ESG agenda has become a priority for boards. FTI’s Global Investor Insights 2020 reported that 82% of institutional investors believed a company’s value increased 20% or more when it had a positive ESG rating; 81% of institutional investors surveyed for FTI’s ESG Resilience Compass 2020 faced increasing pressure to divest from companies with poor ESG ratings.

Stakeholder demands for higher ESG standards will only increase in the wake of COVID-19 as organisations come under growing scrutiny from governments, shareholders, customers and public – especially if they have benefited from any form of state assistance.

BUILDING SUSTAINABILITY INTO THE RESILIENCE STRATEGY

With ESG performance intrinsic to stakeholder confidence and financial viability, businesses’ ability to weather future crises will depend heavily on satisfying stakeholder expectations in this area. Sustainability must therefore be viewed as an important element of resilience.

Companies need to look well beyond mere regulatory compliance: they need to anticipate and adjust to shifts in government policy and in shareholder and public attitudes, while remaining profitable. The necessary insights into emerging attitudes can only be gained through ongoing stakeholder engagement and communication.

This communication must be two way, of course. Corporate reporting needs to address sustainability issues fully: the ESG Resilience Compass 2020 found that 88% of institutional investors believed there should be more reporting on the actual impact of businesses’ activities.

Whatever the business’s size, industry or location, sustainability is an important tool in building resilience and protecting value for today and tomorrow.

0%
of business leaders believe that companies should be run in the interest of all stakeholders, not just shareholders
0%
is the average company value increase investors see as a result of having a postitive ESG rating
0%
of institutional investors have been requesting or intend to request greater transparency from their investee companies on their sustainability strategies
PROTECT
To preserve profitability and freedom to operate, businesses must proactively work towards sustainability goals, internal and societal. This brings risks as well as opportunities: non-compliance or “greenwashing” could bring reputational damage, while ineffective initiatives could waste money or incur penalties.
ADAPT
Public policy and stakeholder expectations are dynamic, so companies must try to anticipate future changes through ongoing dialogue. In particular, they must work to satisfy investors’ evolving ESG agenda while maintaining immediate profitability.
COMPETE
Companies with robust ESG and sustainability strategies can gain competitive advantage. To be credible, however, the strategies must be supported by relevant performance data that convinces stakeholders, particularly investors, that their expectations are genuinely being met.
Kerstin Duhme
Head of Energy, Transport & Environment, Brussels
Martin Porter
Senior Adviser

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