Integration of Environmental, Social and Governance (ESG) aspects into long-term business strategy and growth plans is becoming increasingly important. A well defined ESG strategy enables an organization to devise a road map that considers its stakeholders’ views, is realistic and provides measurable sustainability metrics to track its performance against its stated goals. This creates sustainable value for the company’s stakeholders while improving its bottom line. A business at a high level of ESG maturity is more resilient to risks and disruptions.
We co-develop the ESG risk and opportunities of our clients’ businesses and leverage these while putting in place well-designed strategies that incorporate a well-accepted methodology. The process of developing a thought through ESG strategy is founded on an understanding and measurement (wherever appropriate) of an organization’s internal “as is” situation across all material ESG risks and opportunities.
As a next step periodic improvement targets are set for all the ESG metrics, granular action plans are developed, implemented, monitored and corrective actions are taken in case of slippages. The client organization thus develops better resilience.
As is evident from the service description, these are long terms associations with clients spanning over 2 to 3 years.
More and more responsible investors and customers are trying to find out the ESG related information of potential investee / supplier before their investment / procurement decisions. The most popular sources of credible information for them is available from CDP and ESG rating agencies like S&P’s DJSI, MSCI, FTSE Russell etc. These agencies source credible information about the ESG performance from companies, analyze them, rate /score them and make them available to potential investors and customers.
It is particularly important for the companies to provide the CDP and other ESG rating agencies the most appropriate credible information for this purpose. A good rating or score make them more attractive towards investors and customers.
Each agency has their rating or scoring methodology. It is important for the companies to understand the process and provide information appropriately.
Developing products based on improved ESG performance over the life cycle is something that is getting focus in the recent years. This is becoming a differentiator in the market.
Things like product carbon and water footprints are established differentiators for responsible consumers. Carbon or energy saving during life cycle usage at customers’ end is getting focus of late.
So proper positioning of the product in the market, making optimal use of these ESG aspects, is something that may be judiciously highlighted while marketing the products if a company has such attributes in its products. So, in addition to traditional parameters like quality, price and delivery, ESG attributes is the new parameter that influences buying decisions of consumers.
We support our clients with life cycle studies and appropriate analysis to bring out the positive ESG aspects in the products so that these can be used while positioning the products in the market.
WBCSD has come out with several sectoral roadmaps for UN SDGs. Similar roadmaps for the remaining important sectors are under development.
Our Services : After studying the business case and growth plan, we support our clients in developing their strategies to align with the sectoral roadmaps or goals of the material SDGs. All such alignments have business cases for long term sustainable benefits to business and stakeholders