Preparing your organization for an ESG strategy
Commitment to sustainability is increasingly becoming a priority for companies worldwide. The cry from society to take responsibility is getting louder. Customers, banks, citizens, employees, and value chain partners are demanding that companies make their production supply chains more sustainable. Stricter European regulations also reflect this. For example, the Corporate Sustainability Reporting Directive (CSRD) requires companies to report on their impact and include ESG targets in their business strategy from 2023 onwards.
For many companies, managing ESG is a task that extends beyond their own activities. For example, the lifecycle of products, the activities of supply chain partners and the safeguarding of human rights are also counted among companies’ responsibilities. Companies that are serious about their impact therefore require a solid strategy to achieve their ESG objectives.
Once an organization has a properly thought out ESG strategy in place, it can focus on the value it creates and wants to create in the future, for both its shareholders and other stakeholders. On the one hand, this is about mitigating risks and maintaining a healthy business model in a changing world. On the other hand, it is about creating new value for individuals, society and the environment.
In this paper, KPMG identifies three points of action that leaders can take now to prepare their organizations for an ESG strategy. This paper is particularly relevant for organizations that are just embarking on their sustainability challenge or want to refresh their current strategy. Implementing the points of action as outlined can be seen as one of the first steps in the transition to a sustainable, inclusive organization.
'ESG: from intention to action' is one of the topics in the Open Topic modules of the ESG Innovation Intitute. The first Executive ESG topic module: ESG & Reporting starts at 12 December 2022.
The paper is previously published on www.kpmg.nl.
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