How to measure ESG performance and turn it into business benefits

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Vilma Catani
Co-Founder, CEO of SDG Monitor
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Embracing Sustainability: Leveraging ESG Assessment for Business Benefits

Hello and welcome! I'm excited to introduce you to the most comprehensive way to measure ESG (Environmental, Social, and Governance) performance and leverage it for significant business advantages. The revaluation holds paramount significance for sustainability enthusiasts, businesses looking to incorporate sustainability, and individuals willing to augment existing sustainability strategies with fresh tools and techniques.

About the Presenter

Ilma Katani, the co-founder and CEO of SDG Monitor, is a sustainability expert connecting enterprises with scalable, data-driven advisory services and innovative software solutions which aid in sustainable development.

Elucidating ESG Performance Measurement

The boundaries of corporate responsibility have extended beyond financial factors to include ESG aspects, turning sustainability into either a core factor or an essential component of business strategy. However, before venturing into the creation of sustainability policies and action plans, the pivotal question to be addressed is - why sustainability? The underlying reasons could be varied: mandatory legislation, requirements from investors or supply chain stakeholders, perceived business opportunities, or purpose and values of the company.

Unfurling Sustainability Roadmap

Understanding the benefits of measuring sustainability performance, SDG Monitor helps organizations design their sustainability roadmap involving four main steps:

  1. ESG Screening - Understand the sustainability context of your industry, operational environment, and company.
  2. Action Plan - Based on identified ESG challenges, create a plan defining long and short-term goals.
  3. Reporting and Data Management - Setup performance measurement parameters with effective reporting and data management techniques.
  4. ESG Software - Use advanced tools like impact management tools, carbon accounting tools, and more.

Each step possesses inherence and is crucial for a successful ESG transformation drive.

Decoding Sustainability Action Plan

The sustainability action plan aims to address ESG impacts and align sustainable actions with possible business benefits. These actions may revolve around environment aspects (reducing CO2 emissions, climate change mitigation), social aspects (promoting gender equality), and governance facets (increasing sustainable growth). When paired with business benefits - increased profits, cost savings, or brand enhancement, these actions form a potent strategy for sustainability.

Reporting and Data Management

Reporting is the core of ESG performance evaluation. Applying industry-specific KPIs and complying with established sustainability frameworks like GRI, SASB, and GHG Protocol enhances the credibility of these reports. Undertaking measures like meticulous source management and methodical documentation helps improve data reliability.

A Case Study on Effective Sustainability Program

Finnish company NoHo Partners, showcases an effective sustainability program with a clear delineation of ESG impacts, goals, actions, KPIs, and SDG impacts, contributing to prominent change.

To reiterate, a comprehensive and holistic way of approaching your sustainability program is to carefully plan the measurement of ESG performance. Whether you're a business starting your journey into sustainability or enhancing an existing platform, these measures can yield substantial results.

Thank you for your time, and I hope this blog was instrumental in providing a new perspective on leveraging ESG performance for business benefits. For any further queries or to connect on professional platforms, reach out to me, Vilma, at Vilma@SDGmonitor.co.


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