Leadership and commitment from the board are crucial for an organisation’s sustainable transition. Market trends show that companies excelling in ESG performance by addressing stakeholder expectations gain a competitive advantage and access new opportunities.

 

Can your business create long-term value?

Assessing your ESG risks and opportunities is essential for understanding your company's resilience. Factors such as customer behaviour, investor requirements and climate change consequences can significantly affect your business model. By recognizing how your activities impact people and the environment, and how your surrounding environment can influence your operations, you can ensure your business's long-term viability. 

Risks and opportunities can arise unexpectedly throughout your value chain, enhancing the need for transparency and accountability, which are vital for the green transition.

 

Building sustainability capabilities

Developing ESG competencies within companies and boards is increasingly essential. Boards often face pressure to deliver short-term results while implementing impactful ESG strategies. While external experts can provide valuable insights, integrating sustainability into the core business requires comprehensive training throughout the organization and adequate tone at the top. This ensures everyone understands and embraces the vision and objectives. 


External assistance is beneficial when starting your sustainability journey. Setting a long-term vision is challenging, and an external perspective can help break down silos. Sustainability transformation involves all departments, necessitating cross-communication and a shared language. 


A skills assessment and board training on ESG matters can only benefit the company’s future, bringing ESG expertise to the board and sharing best practices with peers will help you stay competitive and aligned with EU Green Deal goals.

 

Practical considerations for an ESG-leading board

  •  The board is crucial for setting the company's strategy; therefore, effective and regular communication and training are essential.
  • Linking financial KPIs with ESG metrics allows for better performance monitoring and a broader view of risks and opportunities in line with the board’s defined risk-appetite.
  • Treating stakeholders as partners who can highlight issues you might overlook.
  • Implementing decisions from the top down and involve employees in decision-making. Consider establishing an ESG steering committee or an ESG ambassador system.
  • Support teams in charge of implementing new EU requirements and validate the approach taken (double materiality assessment for the CSRD-reporting, eligibility and alignment for the EU Taxonomy, etc)

 

Change brings questions and doubts, so be patient and keep progressing, it is better to try than to give up before even trying.

Do not hesitate to contact our Sustainability Team for board trainings or assistance in integrating ESG considerations into your business model.
 

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