Lesson 8: Creating Business Value through Sustainability

Question 1

What are the four key levers of business value creation?

Answer 1

Revenues, Costs, Intangibles, and Risks

Question 2

How is business value calculated?

Answer 2

Value = (Revenue - Costs)/(Risk + Inflation)

Question 3

How can sustainability reduce costs?

Answer 3

Through eco-efficiency, reduced cost of capital, and lower insurance costs

Question 4

How does sustainability mitigate risk?

Answer 4

By reducing regulatory risks, improving supply chain reliability, and lowering exposure to price volatility

Question 5

How can sustainability increase revenue?

Answer 5

Through product innovation, increased market share, and the ability to charge higher prices

Question 6

What intangibles are enhanced by sustainability?

Answer 6

Product differentiation, customer loyalty, and talent attraction and retention

Question 7

What is the UN Global compact?

Answer 7

A voluntary initiative based on CEO commitments to sustainability principles and UN goals