A new study from Accenture and the World Economic Forum (WEF) shows that companies' ESG intentions and goals go beyond their ability to achieve them. The study "Shaping the Sustainable Organization" reveals the competencies that senior corporate executives need to build to create sustainable organisations that deliver long-term value and make an equitable impact on people, customers and society.

In this direction, Accenture and the World Economic Forum decoded the "Sustainability DNA". A set of 21 management practices, systems and processes that is the cornerstone of a strategy. It focuses on stakeholders, allowing organizations to implement sustainability goals.

"Global environmental and social challenges are turning the tide in business," said Peter Lacy, Chief Responsibility Officer andGlobal Sustainability Services Lead of Accenture. "But our study with the World Economic Forum found that organizations that anchor value creation for all stakeholders at the core of their organization and leadership enjoy significantly better sustainability performance. These pioneers use new ESG technologies and datasets to create more sustainable and resilient supply chains. They systematically harness the innovative power of diversity. They develop by putting the needs of stakeholders at the heart of products, services and new markets. Those organizations that delay or ignore the current juncture to prepare for future risks risk being left behind."

Accenture - Sustainable Organization Index

To assess the strength of Sustainability DNA in companies worldwide, Accenture and WEF created the Sustainable Organization Index (SOI). This index scores nearly 4,000 companies based on the tangible results of ESG practices in 146 sectors. Organizations in the first quartile of SOI show significantly stronger performance compared to those with lower or less consistent scores. Specifically, companies with a strong Sustainability DNA achieve on average a 21% increase in both their EBITDA and their environmental and social impact.

Integrating sustainability DNA leads to behavioral changes across organizations in three ways. Encouraging human relationships and connections. Strengthening collective intelligence. Promoting responsibility and accountability at all levels. Overall, companies tend to score higher on factors related to "human relationships and connections" (average SOI=57). This reflects their ability to engage stakeholders. But they are weaker in factors related to 'collective intelligence' (47). This indicates the difficulty of leadership teams in focusing on stakeholders.

The three steps

Overall, the average rating across all companies on SOI was just 52/100. This shows that most companies have significant scope to further enhance their Sustainability DNA. The study suggests three steps companies should take to create holistic value:

• Diagnosis: High-level evaluation using diagnostic tools that reveal areas of the business where sustainability DNA is strongest and areas where reinforcement is needed.
• Definition: Identification of key interventions that are necessary to achieve the company's sustainability goals.
• Development: Creation of a roadmap - based on the company's vision for change - with a clear set of indicators (KPIs) to measure progress on strengthening sustainability DNA on an ongoing basis.

"The overall impact of COVID-19 has made us realize that businesses need to meet the needs of all parties." This was stated by Professor Schwab, Founder and Executive Chairman of the World Economic Forum. "By investing in organizational practices, businesses will be better positioned to achieve their financial goals while contributing to social well-being and the common good."

Detailed information in the study: Shaping the Sustainable Organization .