How can you align ESG reporting with your corporate values?

In my experience laying the boundaries for material risk to your business is a key element which gets ignored. Always start with the standalone entity and increase the boundary to other subsidiaries as per a maturity plan. Elements like nature of industry , exports revenue , TI risk factor of countries where business is being done , regulatory changes , supply chain and Human Resources need to be of key attention factor. Rulebooks of SASB industry specific ones can be a realistic way to prepare for the maturity plan. IFRS S2 should also be taken into consideration from 2024-25 perspective and interoperability announcements with TCFD and GRI should be tracked.

Materiality assessments are like compasses in the ESG landscape, guiding organizations to focus on what truly matters. They empower companies to align their sustainability efforts with the expectations and concerns of stakeholders, thereby driving positive change and value creation. These assessments should be dynamic, ensuring relevance as priorities evolve over time.

While the assessment of stakeholder engagement, peer benchmarking, and internal alignment is essential, it's also imperative to keep an eye on the global landscape. The world's challenges are rapidly changing, and what might not seem material now could be pivotal in the coming years. Consider setting up an ESG task force that constantly scans for global environmental, social, and governance trends to ensure your material issues are future-proofed.

Setting SMART goals and meaningful indicators is the cornerstone of effective ESG reporting. It's not just about compliance; it's about transparency, accountability, and driving real change. When your goals align with your values, they become a powerful force for sustainability, demonstrating your commitment and inspiring others to follow suit.

Policies need to be reviewed as per adopted ESG Risk Matrix . Without reworking a new Policy and changes to code of conduct- ESG would continue as a tick box exercise .

It helps to align your goals to important legislation like the Paris agreement. Often goals are set for 2050 first. That way you can work backwards and focus on goals for 2030 and the coming year. Or perhaps you can make your goals more ambitions and become Paris Proof by 2040!

Your ESG goals should not just be aligned with global standards but should resonate with your corporate manifesto. For instance, if one of your corporate values is transparency, set goals around transparent reporting, open stakeholder engagements, and setting clear, uncomplicated indicators that everyone can understand.

ESG reporting is a narrative that goes beyond numbers; it's your sustainability journey. Sharing this story authentically not only builds trust but also inspires positive action. When you highlight your challenges and innovations, it humanizes your organization, making it relatable and showing your commitment to progress. Your story should reflect your dedication to a sustainable future and your role in achieving global goals.

Narrating your ESG journey is crucial. But remember, every stakeholder has a different lens. Tailor your story for each audience. While investors might be more interested in numbers and hard data, your employees might resonate more with stories of impact and personal growth. Furthermore, consider opening up a space for testimonials from those impacted by your ESG initiatives. Nothing speaks louder than personal stories of change.

For telling your story transparency is key. This might feel outside of your comfort zone at first, but it will benefit your company at a later stage. People much rather read about you identifying where you need to develop and you taking action on this, than you not sharing anything at all.

Although environmental performance data tells about your engagement to ESG there is much more behind numbers and analytics. There are history of people that drive the change. There are investments you never imagined before. There are actions that addressed new topics. There are stories that leaded to You, because you are the most important actor into the environmental tale.

Some other value-adding ways to seek feedback or validations as to the quality of your ESG report, would be to apply to enter awards. Some examples include: 1. ESG Reporting Awards 2. Asia Sustainability Reporting Awards 3. ESG Awards

ESG reporting isn't a one-way street; it's about two-way communication. Feedback keeps you aligned with stakeholders, and assurance provides credibility. Transparency in this process not only builds trust but also fosters meaningful dialogue and accountability. It's a collaborative effort toward a more sustainable future.

There are several ways for ESG feedbacks: - Group’s scope 1, 2, and 3 GHG Emissions. - Energy usage at global sites by years. - GHG emissions other than Energy-oriented CO2. - Total waste volume. - Measured values of air pollutants (NOx, SOx). - Amount of water withdrawn by source. - Amount of water discharged by destination. - Amount and percentage of recycled water. - ISO 14001-certified sites. - Diversity of employees. - Human capital related investment. - Human resource development. - Compliance and risk management. that lead to your Company's reliability when listed into: - MSCI ESG Leaders Indexes and MSCI SRI Indexes. - STOXX Global ESG Leaders Index. - FTSE4Good Index. - Dow Jones Sustainability World Index (DJSI World).

ESG reporting's true value lies in its adaptability. Regular updates ensure relevance and responsiveness to shifting landscapes. A dynamic approach helps align business strategy with sustainability, engage stakeholders, and drive progress towards a more responsible and resilient future. It's a journey, not a destination.

ESG framework force your company to address sustainability issues and maximizing corporate values by integrating business and sustainability to create both social values and economic values either. Whilst reimagining some processes is crucial for continuing to strive for the sustainable development of society and the sustainable growth of your company.

Beyond the metrics and reports, alignment with corporate values in ESG can be seen in the smaller, everyday decisions. Think about the vendors you choose, the way you handle a crisis, or the initiatives you prioritize. Every choice should be a mirror reflecting your company's core beliefs and values.

In order to solve the problems of resource depletion and climate change, it is moreover relevant the transition to a circular economy through the transformation of business models, extension of product lifecycle and procurement of recyclable raw materials.

The quickest test is to check when was the last time version control of COC - Code of conduct done ! Preach and practice have to go hand in hand