The sustainability factor: Mastering new drivers of value creation

In today’s dynamic business landscape, sustainability is no longer a peripheral concern; it’s a core driver of growth, resilience and profitability. PwC’s latest report, The Sustainability Factor: Mastering New Drivers of Value Creation, explores how CFOs and COOs can unlock tangible business value by integrating sustainability into strategic decision-making.

The report highlights five key value drivers: value at risk, regulation, energy strategy, supply chains, and tax incentives. Each brings both risks and potential benefits. For instance, companies that adapt to climate hazards and regulatory changes can cut costs, lower compliance risks, and boost efficiency. Regulatory shifts are reshaping markets, and businesses that anticipate change can reduce compliance risks and uncover operational efficiencies.

Energy innovation is another game-changer. Organisations are leveraging technology to achieve energy independence, reduce costs and even generate new revenue streams. Meanwhile, supply chain transparency and resilience are becoming essential, especially as new EU directives impose stricter due diligence requirements. Finally, governments worldwide are offering substantial incentives to support clean energy investments. Those who act now can benefit from reduced capital costs and accelerated innovation.

The report offers practical guidance for CFOs and COOs to begin integrating sustainability into their operations, starting with materiality mapping, stress-testing strategies and building robust data systems. With the right approach, sustainability can become a source of strategic advantage.