How can you create shared value for your stakeholders using sustainability standards and frameworks?

The initial step in creating shared value through sustainability standards involves carefully selecting the most appropriate frameworks aligned with your industry and stakeholder expectations. It's crucial to consider internationally recognized standards like the Global Reporting Initiative (GRI), the Sustainability Accounting Standards Board (SASB), Sustainable Development Goals (SDGs), or the Task Force on Climate-related Financial Disclosures (TCFD), ensuring they resonate with your organization's objectives.

In navigating the landscape of sustainability standards and frameworks, businesses must strategically align with their unique context and goals. Considerations should extend beyond industry norms to encompass stakeholder expectations, material sustainability risks, and the depth of commitment. Prominent frameworks such as GRI, SASB, IIRC, UNGC, and SDGs provide comprehensive structures, but the key lies in selecting those that resonate with your specific industry, values, and capabilities. This tailored approach ensures meaningful integration of sustainability practices, fostering both corporate responsibility and resilience in an ever-evolving global landscape.

would highlight three kep points Align with your business context: Choose standards that are relevant to your industry sector and value chain, addressing the specific sustainability issues and opportunities relevant to your business operations. Consider stakeholder expectations: Engage with your stakeholders, such as investors, employees, customers, and communities, to understand their expectations and interests regarding sustainability reporting. Assess your resources and capabilities: Evaluate your organization's internal resources and capabilities, such as staff expertise, data availability, and financial resources, to determine the feasibility of implementing specific standards.

There's a global harmonisation of reporting standards - Int'l Sustainability Standards Board (ISSB) under the Int'l Financial Reporting Stds (IFRS). This would be relevant for ex-EU, while EU would report under Corporate Sust Reporting Directive (CSRD) & European Sust Reporting Stds (ESRS). These are compliance-driven & listed corporates are obliged to report. These spells out general sust (ISSB S1) climate-related risks (ISSB S2) which affects a company's performance. These differ from GRI, which is voluntary and spells out a company’s impact on the environment and community. How to choose? - Is there a compliance requirement? - Do your key stakeholders require it? - Is it material (i.e. significant financially & reputationally)

Climate related financial disclosure like TCFD is a must to consider beside net zero roadmap and emission calculation standard reference like GHG Protocol Corporate Standard

I would say stakeholders engagement is a key for recognizing the needs and defining the opportunities. The Standards and framework will govern the application.

This strategic assessment delves into your existing sustainability performance, illuminating areas ripe for improvement or innovation. Beyond an internal lens, it enables benchmarking against industry peers and best practices, providing a roadmap for targeted action and resource allocation. This process isn't just about identifying shortcomings; it's a catalyst for setting pragmatic targets, establishing measurable indicators, and uncovering avenues for value creation and competitive advantage. In essence, the gap analysis serves as a dynamic tool, propelling businesses toward a future where sustainability isn't just a compliance checkbox but a driver of meaningful progress and resilience.

Aligning incentives and rewards with sustainability objectives propels a culture of commitment, urging every facet of the organization towards a common goal. Regular tracking and evaluation, indispensable in this dynamic landscape, not only measure progress but illuminate areas for improvement and innovation. The iterative nature of this process, guided by feedback and learning, ensures adaptability—allowing businesses not just to meet sustainability goals but to evolve, creating enduring shared value for stakeholders and reinforcing their position as responsible global citizens.

Data driven initiatives are very important in real time with constant monitoring and continuous improvements and appropriate actions and decisions to achieve sustainability goals and create shared value for stakeholders

Transparently communicating your sustainability efforts and their outcomes to stakeholders is critical. Effective communication includes sharing progress reports, achievements, challenges, and the impact of initiatives aligned with the chosen standards. Stakeholder engagement through accessible and comprehensive reports fosters trust and credibility while demonstrating your commitment to shared value creation.

The final step is to communicate and report your results to your stakeholders and the wider public. It is important to use standards and frameworks as a guide for your communication and reporting content and format. Additionally, you should be transparent, accurate, and balanced in disclosing your performance and impact. Make sure to highlight your achievements, challenges, and learnings, while demonstrating how you create shared value for your stakeholders and society. Inviting feedback and dialogue can help improve your sustainability practice.

La recomendación que realizaría es que en los procesos de diagnóstico e implementación primero se debe revisar el estado de lo que yo he denominado las 3P de la organización, es decir la implementación de políticas, planes y programas de sostenibilidad, con el fin de establecer una estructura mínimamente sólida en el tema en la empresa. En mi experiencia depende del grado de madurez de la organización en los temas ESG y de sostenibilidad, el marco más acertado para avanzar con los diferentes grupos de interés es inicialmente implementar los diez principios del pacto global, si la organización no logra cumplir con estos diez diferentes elementos, difícilmente podrá cumplir con indicadores, marcos de sostenibilidad o estándares más exigentes.