Developments such as climate change and growing social inequality have transformed society over the past few decades. For the majority of the global population – all of whom are potential customers or employees for companies – the topic of sustainability is more important than it was a year ago. More and more people are developing a sense for sustainability. Investors and creditors alike incorporate environment, social and governance (ESG) criteria into their evaluations. Companies select their suppliers on the basis of ESG standards. Regulators are introducing legislation governing reporting on sustainable issues, or tightening up existing rules.

These developments impact companies, so it should come as no surprise that 87% of managers say they want to invest more in sustainability over the next two years. They know that failure to take meaningful sustainability action could well result in enormous costs in the foreseeable future. But the business opportunities for realising new potential with sustainability can be even greater. In our white paper, we use decision theory to demonstrate why it is essential that companiesadopt a data-driven approach in uncertain decision- making environments such as sustainability.