Task of ESG is about Sustainable Vaue Creation

What Do People Want to Feel?

Objective of Stage 1:

The Sustainability Value Creation stage encompasses ensuring readiness of sustainability alignment, by preparing the organization to understand and accept the criticality of the need for Sustainability/ESG Track Profile.

Tasks:

  1. Determining what needs to Sustainability Value.

    1. Survey your company.

    2. Understand why value is necessary.

  2. Ensuring support from management and the C-suite.

    1. Talk with stakeholders to obtain support.

    2. Frame your gap as one that positively impacts the entire company.

  3. Creating the need for Sustainability/ESG Value Creation.

    1. Market a compelling message about why empowerment is best.

    2. Communicate the empowerment using creation process.

How Do We Do It?

Objective of Stage 2:

The Sustainability Value Creation in particular is notoriously complex, so executing a well-planned enhancement process does not guarantee predictable results. Therefore, you must prepare a variety of options, from the planned enhancement process to trial-and-error. With each attempt at program, examine what worked, what didn’t, what parts were resistant, etc.

Tasks:

  1. Communicate widely and clearly about the planned implementation, benefits, and who is affected. Answer questions, clarify misunderstandings, and dispel rumors.

  2. Promote and empower action. Encourage employees to get involved proactively with the program, and support managers in providing  direction to staff.

  3. Involve others as much as possible. These easy wins can accumulate into larger wins, and working with more people can help you navigate various stakeholders.

Increasing Your Visibility

in the Eyes of Stakeholders

Objective of Stage 3:

The Value Creation Evaluation & Recognition mean reinforcing and institutionalizing the desired changes, ensuring they are widely accepted, utilized all the time, and incorporated into the business and the organizational culture.

Tasks:

  1. Impact evaluation is an assessment of how the intervention being evaluated affects.

  2. Tie the new changes into the culture by identifying change supports and enhancement barriers.

  3. Develop and promote ways to sustain the enhancement long-term. Consider:

    1. Ensuring leadership and management support and adapting organizational structure (e.g., ESG Committee or Chapter) when necessary.

    2. Establishing feedback processes.

    3. Creating a rewards system.

  4. Offer training, support, and communication for both the short- and long-term. Promote both formal and informal methods, and remember the various ways that employees learn.

  5. Celebrate success!

Featured Insights

from Experts

According to the International Valuation Standards, a Framework to Assess Sustainability Value Creation Opportunities at the Enterprise

 

Benefits of Strong ESG Value Creation:

  1. Reliance on Brand/Brand Strength

  2. Reliance on Human Capital and Workforce Skill Level

  3. Nature of Customer Relationships

  4. Premium to Book Value and Value-added Business Model

  5. Tangible Asset Intensity

Impact Evaluation

Process

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In business, sustainability refers to doing business without negatively impacting the environment, community, or society as a whole.

Sustainability in business generally addresses two main categories:

  1. The effect business has on the environment

  2. The effect business has on society

The goal of a sustainable business strategy is to make a positive impact on at least one of those areas. When companies fail to assume responsibility, the opposite can happen, leading to issues like environmental degradation, inequality, and social injustice.

Sustainable businesses consider a wide array of environmental, economic, and social factors when making businesses decisions.

 

These organizations monitor the impact of their operations to ensure that their short-term profits don’t turn into long-term liabilities.

Engaging Customers in Sustainability

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In the era of sustainability, successful organizations need more than just operational excellence. Companies must thrive and grow while simultaneously solving some of the world’s biggest challenges (beside product values and/or service values).

Key Customer Sustainability Preferences are including.

  • 76% of customers believe it is no longer acceptable for companies to solely make money.

  • They would switch to a business that support sustainability/ESG issues over one that does not. 

  • They also willing to pay more for sustainable items and make sustainability important for all businesses.

Know your customers better because only they can help you get more lead and more business. Understanding customers is the key to giving them good service which in turn results into strong customer relationships and new sales through positive word-of-mouth recommendation. 

Everyone can claim that they are a sustainable brand, but what matters is how that brand makes potential customers feel. Brands that are truly seen as sustainable evoke an emotional reaction from consumers on a deep, personal level.

 

Loving a brand or caring for a brand does not automatically make it believable. True sustainability for a brand depends on the business walking the talk. 

In an era of sustainability, having a systematic action plan can definitely help to focus on a common perspective, like the Sustainable Development Goals (SDGs). This fantastic list of 17 goals, created by the UN at the 2030 Agenda for Sustainable Development, provides a manageable framework to view the world’s problems.

Without this UN-backed framework, we cannot buy into a sustainable vision of the world. The SDGs also can be aligned with ESG (insights will be shared in Certification Workshop for Tools), which in turn helps companies promote sustainability, philanthropy, and public social impacts.