Embarking on an ESG transformation journey can be very tasking for an organisation. Ensuring that the stakeholders and staff have a good understanding of ESG, particularly in the operational context, and having the right project plan as well as team in place to ensure an effective execution from strategy to reporting requires sustained momentum.
Organisations are often overwhelmed when deciding how to embark on their ESG journey with sustained momentum. This feeling of being overwhelmed is because there is the demand for their day-to-day tasks and short-term deliverables, which they must continue to execute while implementing and delivering on the ESG targets set for the short, medium and long term.
Fulfilling this dual objective requires a clear and deliberate approach to executing the organisation’s ESG transformation agenda.
This approach ensures that organisations realise tangible benefits from adopting ESG standards and policies for the benefit of their stakeholders while enhancing future financial viability. Some initiatives for sustaining an organisation’s ESG transformation agenda include the following.
One crucial aspect is simplifying the ESG transformation agenda into smaller goals with different time horizons that clarify what needs to be achieved within each time bucket.
Organisations can, therefore, execute their ESG agenda with clarity and focus on what needs to be achieved at any given time.
Closely linked to this is ensuring accountability for the ESG targets set. Organisations must ensure that they put in place processes that promote accountability and provide incentives for driving the ESG transformation agenda across the organisation.
There must be a transparent system for measuring and reporting ESG metrics and targets internally to aid decision-making and planning.
Organisations must assign teams roles and responsibilities to deliver on the set targets. Another aspect is having the right skills and competencies within the organisation.
Organisations have to assess the talent gaps and design a plan to plug those skills gaps either by internal recruitment, outsourcing using experts to supplement internal capacity or an appropriate mix of both.
Having the right skills is key to successfully delivering on the ESG agenda and sustaining the momentum. Finally, organisations should celebrate milestones and highlight tangible pecuniary benefits delivered to the organisation and its stakeholders from the ESG transformation agenda.
The writer is a Partner at Deloitte East Africa. He is an author who writes and speaks widely on corporate reporting topics.
