A cultural shift for a greener world

To tackle climate change and enhance social inclusion, we need to improve environmental, social and governance (ESG) strategies – and culture can play a crucial role. 

And how can cultural institutions demonstrate their contribution to sustainable development – and how does that help them to secure funding so they can thrive? 

To address this challenge, Deloitte Italy, with the collaboration of PromoPA Foundation, developed a new ESG impact assessment framework for Parma Capitale Italiana della Cultura 2020+2021. A public-led initiative designed to revitalise the city through arts and community engagement, it has now become a useful tool for cultural organisations of all shapes and sizes.

“UNESCO reminds us that placing culture at the heart of development policies is the only way to ensure a human-centered, inclusive and equitable development,” says Roberta Ghilardi, Senior Manager at Deloitte Italy. “Yet the lack of reliable reporting and monitoring processes represents an obstacle in pushing forward the importance of culture in sustainable development strategies.”

“People often discuss culture in artistic or intangible terms,” says Roberta.
“But we found a way to explain the contribution of culture to society using a language that businesses and policymakers understand. This allows organisations such as museums, theatres and performing arts associations to communicate their impact in a way that resonates with funders and stakeholders.”

Colleagues from Audit & Assurance in Deloitte Italy developed the framework by integrating the Global Reporting Initiative (GRI) Standards with UNESCO’s Culture 2030 Indicators. They then collaborated with both public and private Italian cultural institutions to implement it.

A final report, published in February 2023, has allowed local and national public institutions to assess the event’s contribution across four key pillars: environment and resilience, prosperity and livelihoods, knowledge and skills, and inclusion and participation. It has also helped bridge the gap between corporate ESG reporting and cultural impact assessments, as well as provide data-backed insights to justify investment from funders and stakeholders.

Several charities, foundations and cultural institutions have shown interest in using the tool to demonstrate their role in sustainable development.

Roberta continues: “Cultural organisations can now assess and showcase their impact in a way that aligns with corporate sustainability expectations. This supports their position when seeking funding and policy support, enabling them to do essential work.”

Like culture, the framework is evolving to include indicators to measure the environmental impact of digital and hybrid events. And beyond Parma, it’s helping organisations recognise that culture is a key driver for environmental and social change.

Deloitte Italy is currently working on applying the framework to a public-led initiative that will help cultural organisations assess the impact of projects supported by national funding.

Roberta concludes: “I hope this framework will be the starting point for developing a more comprehensive understanding of how culture may help our society.”

The framework enables cultural organisations to:

- Make a stronger case for financial support from donors and businesses by demonstrating broader impact, including ESG outcomes required in public funding.
-  Advocate for stronger policy integration of culture in sustainability strategies.
- Evaluate and improve the effectiveness of cultural programmes.

This project has been recognised through the Deloitte NSE Impact Awards, an internal recognition programme which celebrates the impact our people and teams make on clients, people and society.