Future planning

Increasingly, investors believe that companies should plan for the long term, taking into account such major global challenges as climate change or the threat of HIV/Aids.

by McKinsey Quarterly Online, May 2007
Last Updated: 23 Jul 2013

They will be judged on their ability to plan for their future in the context of wider environmental and social problems, as well as by showing how they can become part of the solution.

The best companies will be those that integrate their sustainability plan with their overall business strategy: Johnson Controls, for instance, is building future success on its division that supplies batteries for hybrid cars.

It is well known that 60%-80% of the value of a business lies in its long-term cash values, but the principle of long-term planning is reinforced by the rise of sustainable investing.

People believe that multinationals are in a stronger position to alleviate some of the problems of poverty, disease, water scarcity and climate change than governments, so the pressure for boards to plan their strategies and sustainability policies in an integrated way will increase.

Investing in sustainability: an interview with
Al Gore
David Blood
Lenny T Mendonca
Jeremy Oppenheim
McKinsey Quarterly Online, May 2007.

Find this article useful?

Get more great articles like this in your inbox every lunchtime

A simple cure for impostor syndrome

Opinion: It's time to stop hero-worshipping and start figuring out what greatness looks like to...

I was hired to fix Uber’s toxic culture - and I did. Here’s ...

Harvard’s Frances Frei reveals how you know when your values have gone rotten, and what...

Social responsibility may no longer be a choice

Editorial: Having securitised businesses’ loans and paid their wage bills, it’s not inconceivable the government...

What went wrong at Wirecard

And how to stop it happening to you.

Leadership lessons from Jürgen Klopp

The Liverpool manager exemplifies ‘the long win’, based not on results but on clarity of...

How to get a grip on stress

Once a zebra escapes the lion's jaws, it goes back to grazing peacefully. There's a...