Doing Well by Doing Good: Resilience, Risk and the Reputation Value of ESG
ESG creates opportunity, in particular, it helps to drive innovation. Its ‘sustainability lens’ forces businesses to think critically about the long-term value they create, and to identify new trends, business opportunities and partnerships. More broadly, ESG is an increasingly powerful tool to strengthen corporate reputations.
Building An Integrated ESG Strategy
When it comes to creating an end-to-end strategic shift in the alignment of ESG with commercial objectives, business leaders have many considerations to take into account. How to ensure ESG feeds into the business planning and value creation process? Do the ESG commitments truly deliver on the ‘North Star’ that is corporate purpose. What are the expectations of stakeholders (both inside and outside the organisation), and how do you balance competing priorities and expectations? How do you ensure the goals you set are ambitious and impactful, and that your reporting addresses the needs of double materiality (financial and ESG data)?
What is Driving Change: The role of stakeholder management
While the concepts that sit behind ESG are certainly not new - and have been at the centre of corporate strategy for decades - the growth and formalisation of ESG as an explicit mission have been catalysts for change. The impacts of this change are far reaching including how companies define, prioritise and manage their stakeholders. This is demonstrated by the rise of stakeholder capitalism, the notion that businesses no longer exist to create profit for shareholders/owners, but instead have a responsibility to create value for a much broader set of stakeholders.