Using Covid as a litmus test for a company’s resiliency
– The resilience of a company’s ability to weather the pandemic is an indicator of how they’ll fare in the long-term.
– How well did the company’s business continuity planning work? How was the business management resiliency in action? Do its words match its abilities? Or were there just empty promises in its ESG report?
At its most basic level, sustainability is about being prepared for the long term. And with the benefit of hindsight now for Covid, it’s become even more clear that having a plan – being prepared – with a long-term view is critical for your organization’s staying power.
Those companies that plan with a longer-term view probably were the ones able to capitalize – and recover quicker – from the health crisis. Investors are now able to gauge whether your company truly is built for the long haul. Is it resilient? How well did its business continuity planning work? How was the business management resiliency in action? Do its words match its abilities? Or were there just empty promises in its report?
How about employee health and safety? How did the company fare there? Did the company provide enough information about that? This surely will be a topic of greater focus from investors going forward. Hat tip to Yafit Cohn of Travelers for this wisdom!