From strategic planning to sustainability strategic planning

In the last two decades, the concept of sustainability has been changing and evolving (Ratti et al., 2023; Qi et al., 2023). In particular, in the European landscape, directives have been introduced aiming at making sustainability reporting mandatory for a larger number of companies (CSRD, 2022; Cuomo et al., 2022; NFRD, 2014). The 2022 directive, i.e. the Corporate Sustainability Reporting Directive (CSRD), has proposed the introduction of detailed requirements and information for companies (Aureli et al., 2020; Cosma et al., 2022). Thus, companies are also required to provide information regarding their strategy in terms of environmental, social, and governance (ESG) factors (Fiandrino et al., 2022). It becomes essential to possess insights both into short-term initiatives and achievements of a company and also into future forecasts (KPMG, 2023; Oprean-Stan et al., 2020; Ratti et al., 2023). Thus, strategic planning regarding non-financial data assumes crucial importance, entailing the delineation of objectives to be attained in the medium to long term within the framework of ESG criteria (Bhimani - Langfield- Smith, 2007; Esch et al., 2019; Theriou, 2015). Companies are starting the establishment of sustainable goals to be accomplished over a typically multi-year horizon alike financial performance target planning (Qi et al., 2023). This chapter examines the transition from strategic planning to sustainability- focused strategic planning. This contribution aims to shed light on the evolution of strategic planning, emphasizing its integration of sustainability issues into reporting and disclosure ESG information and activities. The purpose is to explore how organizations adapt the planning process to address ESG concerns alongside their traditional business objectives.