PwC’s Sustainable Value Governance

A framework to create lasting enterprise value by aligning ESG action with long-term strategy

Why is sustainability governance important?

ESG (Environmental, Social, Governance) is a label for a fundamental shift in market demand. Employees, customers and investors want to work for, buy from and invest in companies that are aligned with their personal values. ESG is a market force that every company should address.

Sustainable value - value that can last over time - is a goal every business leader is striving to meet. PwC’s Sustainable Value Governance framework helps leaders respond to their stakeholders’ specific ESG needs in a way that helps create sustainable value.

The fastest growing segment of the investment fund industry is in ESG focused funds, which totals upwards of $18.4 trillion as of 2021.

Source: PwC Asset and wealth management revolution 2022: Exponential expectations for ESG

What is PwC’s Sustainable Value Governance framework? 

The PwC Sustainable Value Governance framework:

  • Integrates the ESG needs of your company’s particular stakeholder community with other strategic considerations to identify ESG investments and actions that can drive sustainable value
  • Develops a strategy that sets long-term goals and shorter term milestones
  • Communicates a clear, concise strategy narrative across the organization
  • Provides a feedback loop of performance data to senior management
  • Documents the entire process

There are two main elements at the heart of the Sustainable Value Governance framework:

The Sustainable Value Matrix:

The Sustainable Value Matrix maps stakeholder ESG needs on top of risk management, growth and other strategic concerns to produce a three-dimensional picture of the company’s potential market opportunities and risks.

The Sustainable Value Book:

The Sustainable Value Book is both a strategy setting and corporate governance process. The book provides a clear, concise strategy narrative, progress reporting, message discipline and control and documents the supporting data. It helps communicate the strategic plan through the organization and forms the basis of external communications.

These elements are combined with execution planning and strong data and reporting structures. By drawing information together and translating it across functional areas, Sustainable Value Governance can help you create an enterprise-wide ESG strategy that builds trust with stakeholders, satisfies investor and regulatory demands and differentiates your company from competitors.

How does it work?

The Sustainable Value Matrix

Defines ESG issues you’ll take action on by engaging with stakeholders, analyzing risks and identifying opportunities to assess impacts on long-term value

Execution strategy

Integrates company ESG values into long-term strategy by setting goals, milestones and incentives

Internal reporting structures

Confirms the right information gets to the right people at the right time and provides a basis for strategy, decision-making and investor-grade reporting

The Sustainable Value book

Organizes the process of building out the framework including ESG narrative, clear lines of responsibility, investor-grade information as a basis for oversight and reporting, and documentation of the entire process

Benefits of Sustainable Value Governance

Sustainable Value Governance can help you:

  • Assess which ESG investments and actions can lead to sustainable value.
  • Identify ESG investments and actions that don’t make sense for the company and provide a principled, well-documented reason for saying “no”.
  • Provide investors with a clear, concise narrative of the company’s ESG strategy and progress, and provide the data to support it.
  • Build trust by aligning with your stakeholder community’s ESG values and providing transparent reporting on progress.
  • Prepare for various regulatory requirements on ESG related matters, including the requirement to disclose corporate governance processes.

With PwC’s Sustainable Value Governance, you can realize the value of ESG as a strategic asset in attracting talent, creating customer loyalty and continuing to build trust among stakeholders.

Contact us

Jamie Gamble

Managing Director, PwC US


Maria Castañón Moats

Leader, Governance Insights Center, PwC US


Kevin O'Connell

Trust Solutions Sustainability Leader, PwC US


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