Organizations can no longer ignore the importance of Environmental, Social, and Governance (ESG) planning. Everyone from employees to investors to customers is taking a hard look at other companies’ ESG strategies to decide who to work for, invest in, or do business with. For an organization to stay competitive in today’s world, they have to have a sound ESG strategy. Building an ESG strategy is a daunting task, especially when considering all the variables and topics covered by Environmental, Social, and Governance. But no matter what type of company you are in, there are a few tips to help you craft a good ESG strategy.
The purpose of the materiality assessment is to hone in on the ESG topics that will most likely affect your business performance and the interests of your stakeholders. Though all ESG topics are essential, you cannot give them all priority. At the end of the assessment, you should have a clearer understanding of where you stand compared to your competitors and have some action steps planned for the future.
Now that you have established what ESG topics to focus on, it’s time to establish your current policies, programs, engagement, and other metrics within the company. By determining where your ESG standing is currently, you can better assess future goals.
The three main objectives will be to maintain, improve, and optimize your ESG standing. Ask yourself questions like what you’re already doing well, areas where your peers are excelling that you can improve upon yourself, and what areas you can sharpen up even further.
While steps 1-3 are to prepare yourself for your ESG strategy, you still must be aware of any roadblocks or issues you face along the way. Take time to theorize and analyze any of these pain points and how you can best overcome them.
Develop a roadmap
Developing an ESG roadmap will help you meet the objectives you set out in step 3 and keep you on track. Create clear and measurable outcomes to see your success. Remember that while ESG oversight is essential, fundamental changes will happen at the ground level of your organization. Developing an ESG roadmap will ensure that every member of your organization will work towards the same goals.