How CSR Aligns With Long-Term Business Sustainability

A recent BDO survey (article in comments) reveals that 75%+ of CFOs plan to maintain or increase sustainability investments—even in the face of potential policy shifts under a new administration. This underscores a crucial shift I am seeing with my clients: Sustainability is no longer just a regulatory obligation but a strategic business imperative. From ESG-driven risk management to long-term value creation, companies are prioritizing sustainable practices to stay competitive. The report concluded that "91% of companies working to integrate sustainability also anticipate increased revenue in 2025, compared to only 74% of other respondents, and 69% expect increased profitability, ahead of their peers at only 56%". Companies that are integrating sustainable practices into their operations and supply chains are unlocking cost savings, innovation, and competitive advantage while mitigating risks. #Sustainability #BusinessLeadership #ESG #CorporateStrategy

If you’re a CFO at a PE-backed company — sustainability isn’t a CSR initiative. It’s your best EBITDA lever. Here’s the reality we see every day: If you’re running a manufacturing or real estate company, and you’re looking for $10M, $20M, $50M in EBITDA expansion over 5–7 years? Most of your biggest levers will be sustainability levers: • Redesigning packaging to reduce materials • Launching circularity programs to reclaim products and feed production • Switching facilities to renewable energy or improving efficiency • Shifting transportation and logistics to lower-carbon options • Building brand equity that commands premium pricing with consumers And you don’t even have to call it “sustainability” if you don’t want to. Call it operational excellence. Call it brand repositioning. Call it value creation. But the levers are the same. Because sustainability is now baked into how you expand value — financially, operationally, and reputationally. Look at a company like Lipton under CVC. Premiumizing the brand. Optimizing supply chain efficiency. Aligning with shifting consumer expectations. Every major initiative connects back to sustainability fundamentals. And when you execute well? You don't just hit EBITDA targets. You improve exit multiples. You de-risk the asset for future buyers. You increase strategic optionality. If you’re a CFO or portfolio operator today, you don’t have the luxury to treat ESG as a reporting task. 𝐈𝐭’𝐬 𝐚 𝐩𝐥𝐚𝐲𝐛𝐨𝐨𝐤 𝐟𝐨𝐫 𝐭𝐫𝐚𝐧𝐬𝐟𝐨𝐫𝐦𝐚𝐭𝐢𝐨𝐧. The companies that realize this early will dominate the next cycle of PE exits. The ones who wait? They’ll be explaining “why sustainability wasn’t a priority” in due diligence rooms five years from now.

1980: Impact is a buzzword stuck in a CSR report. 2024: Impact drives hiring, procurement, and product development. Here’s what forward-thinking companies are doing differently: 1. Break the silos Impact can’t sit in isolation. It needs to be part of every choice. Who you hire, which suppliers you work with, and the way you create products all matter. → Companies embedding impact in operations are seeing higher loyalty from employees and customers. → Treating impact as central to decision-making gives businesses an edge. 2. Redefine CSR A CSR program should change how your business operates, not just exist as a feel-good initiative. → Shift the focus from optics to substance. → Start asking: “Does this choice align with the purpose we stand for?” 3. Get every team involved Impact goals shouldn’t stay at the top; they need to resonate across all levels. → Schedule a workshop to identify how every department can contribute. → Example: Marketing drives purpose-driven campaigns, while procurement prioritizes sustainable suppliers. The result? → A company culture that aligns actions with values. → A brand that leads by example and attracts trust from customers and employees alike. The lesson: Impact works best when it’s embedded in decisions, not left on the sidelines. With purpose and impact, Mario