What are the key success factors for ESG leadership?

Defining the ESG purpose of the organisation with the impact in the industry it operates is of paramount importance. In my experience, the process starts with defining your ‘sphere of influence’ and this comes from thorough understanding of the impacts it creates for stakeholders. Once the SoI is defined, the industry level goals can be easily jotted down which in turn will help defining the Purpose. The view should be long term and achievable through internal stakeholdership.

Considering the whole confusion around interpretation and meaning of ESG, I think the first step has to be answering the question - "What is our definition of ESG?"

Corporates need to start with an ESG strategy and roadmap with specific targets for KPIs related to identified material topics and establish governance, capacity and capability to realise the roadmap and targets. Corporations also need to establish data collection, monitoring and disclosure systems to work towards endgames with all stakeholders to build trust. They can drive business growth in areas where ESG is creating opportunities by creating new SBUs as well as products and services. They can further widen their influence by enrolling their suppliers and customers into their ESG journey in the wake of new BRSR regulations of value chain reporting.

By embodying these key success factors below, ESG Leaders can drive meaningful change, create long-term value, and contribute to a more sustainable and inclusive future - too bad we are limited to 750 characters or I would expand on each point. 1- Strong commitment to Environmental, Social and Governance principles 2- Clear Vision and Strategic Direction of the organization's goals and a strategic plan to execute 3- Stakeholder engagement in decision making and communications 4- Integration of ESG into Business Operations: 5- Collaboration and Partnerships: collective action drives results 6- Continuous learning and Improvement: a growth mindset 7- Accountability and Transparency about their goals, progress and challenges

Les facteurs clés de succès du leadership ESG sont: - Avoir une vision claire et partagée des enjeux ESG . - Intégrer les critères ESG dans la stratégie, les processus, la culture et la communication . - S'engager avec les parties prenantes pour identifier les attentes, les risques et les opportunités ESG . - Mesurer et divulguer les performances et les impacts ESG . - Innover et se différencier par des pratiques ESG exemplaires et créatrices de valeur .

Progression is important in ESG leadership. There can be bold statements but it would mean nothing without SMART goals. Setting SMART goals allow for milestones to be set in order to achieve the ESG objectives. For example, net zero by 2050 is a bold statement but an action plan of major activities have to be spelt out in order to give credibility to the program. These goals also should not be out of reach as far as possible to avoid setting people up for failure. With the setting of SMART goals, an ESG program could be on track to real improvement in sustainability performances.

The "measurable" dimension has to be taken very seriously when it comes to sustainability goals. In many contexts, the lack of maturity and/or available data can lead to significant variations in the measurement of some metrics, leaving some goals unreached or simply abandoned. If you're early in your ESG goal-setting, chose simple and available metrics as a stepping stone. Time will make it easier to mobilize the right stakeholders and resources so as to better collect and structure the necesary data for more holistic ESG goals.

Culture is possibly the most important thing when enabling sustainability. Leadership at the top needs to enable their teams to priortise sustainable decisions, to believe in the business value of sustainability, and to empower them to make innovative decisions. It should be included in bonus structures, project KPIs, and built into business and team decisions. It needs to be seen as a core business value - that is considered and determined before any product roll out, and communicated in a transparent way.

ESG leadership extends beyond isolated initiatives; it involves cultivating a culture of sustainability throughout the organization. Success lies in integrating sustainable practices into the organizational DNA, making it a collective responsibility. This cultural shift includes employee engagement, education, and empowerment, fostering a sense of shared commitment to environmental and social responsibility. When sustainability becomes ingrained in the company culture, it generates more meaningful and lasting impact.

Initiate any cultural transformation journey with a comprehensive sustainability maturity assessment of the organization. This foundational step enables us to accurately gauge our current position within the sustainability landscape, thereby facilitating the strategic delineation of our desired outcomes. Such an assessment ensures that we can devise and implement a meticulously crafted, actionable roadmap. This roadmap is essential for driving a profound and enduring cultural shift towards sustainability, aligning with business objectives. It allows to leveraging organizational strengths to foster resilience, innovation, and long-term value creation.

Building a culture of sustainability involves embedding ESG responsibility into the very fabric of an organization. This starts with strong leadership commitment, where executives set clear sustainability goals, lead by example. As Paul Polman famously noted, "Businesses cannot succeed in societies that fail," emphasizing the importance of integrating sustainability into a company's mission. Companies must educate employees, to ensure everyone understands the broader impact of their roles. Integrating sustainability into operations, from sourcing to production, ensures that it's not just a separate initiative but a core business practice.Innovation is key, that fosters cross-functional collaboration to driving sustainable solutions.

Real change can only occur when sustainability is firmly anchored in a company's DNA. ESG leadership goes beyond mere policies and practices and is based on people and their culture. A corporate culture that puts sustainability at the center promotes employee motivation and innovation. To achieve this goal, leaders must act as role models and promote values such as transparency, accountability and community. Sustainability should be integrated into everyday life, from decision-making to employee motivation. To create a collective understanding and commitment to these important issues, training, workshops and regular communication about sustainable goals and progress are essential.

Collaboration ideally means with suppliers , vendors , customers and local governments. These are involved people with skin in the game. Such a collaboration will ensure your reach your goals faster and easily. The wholesome support generated through collaborative effort also ensured great PR which helps business and cash flow. Additionally collaboration is also done with competition and cross category competition. This works to your benefit since innovation is a costly exercise. So is customer education. Finally collaboration with colleges universities research houses and industry bodies help in raising the bar, gives futuristic ideas. All in all ESG is collaborative.

Consider stakeholder feedback in decision-making and disclosure practices. Prioritize diversity, equity, and inclusion initiatives within the organization, ensuring a diverse workforce, inclusive workplace culture, and equal opportunities for all.

In my current capacity as leader of ESG, my company is collaborating with various stakeholders to explore, discover and produce new ways to thinking, processes, and solutions to the challenge of waste and utilizing technology to promote efficiency and effective outcomes. Being open to collaboration is an opportunity for new breakthroughs to manifest for the good of people and planet.

ESG is a group effort. It should involve everyone up and down the value chain, from your vendors to your customers. 1) Talk with your customers and make sure they understand you are willing to collaborate on their sustainability efforts. 2) Talk with your suppliers. Your larger suppliers might already have initiatives of their own; in this case, you can also learn from their efforts. With smaller suppliers, work with them; help their leadership and their team to understand the cost-benefit. And also train them on the best practices.

I believe in the idea that we all have a role to play in the progress towards sustainability and innovation is the key to pace up the progress. We must leverage technologies like AI, IoT, Digital twins, along with a pinch of creativity to come up with innovative solutions to tackle issues like climate change, biodiversity loss, soil extinction, or in general, to achieve sustainability. We must innovate in our thinking capabilities in order to come up with better policies, business models, etc. This also helps in creating a circular economy model which is one of the ultimate goals that can help in the long term. Hence, foster an innovative environment where people can think beyond those cubicles and come up with long term solutions.

Sustainability Leadership or a Sustainable lifestyle cannot be spoken about without including Innovation. And it doesn’t have to be essentially extremely high-tech or anything. An easy example is of a pencil I have. It is made by recycled paper and the end of the pencil can be planted as it is essentially a seed. Every time I use a pencil completely, I get a new plant. What can be more circular than this as well as more basic. While Blockchain is making itself less carbon-intensive and technology paired with AI can march towards a net/zero journey, this innovation can also be as basic as my pencil. Everyone has a choice here, which is the best thumb about Sustainability.

Sustainability is more than just a compliance checklist. It drives innovation and transformation! It requires a creative approach to rethink existing practices and develop sustainable solutions. Integrate sustainability as a central element of your business strategy to ensure long-term success and competitive advantage. It's about challenging the status quo and taking bold steps - be it by introducing environmentally friendly materials, optimising production processes or investing in clean technologies. Innovation in ESG leadership means thinking ahead and acting proactively to not only reduce your company's environmental footprint, but also to make a positive social impact.

1. Understand ESG has nothing to do with Sustainability 2. Read the 2005 Freshfield Report to learn what ESG is about from Professor Paul Watchman 3. Learn it was Paul Clements Hunt that coined the term ESG in 2004 4. Understand ESG is a tool for investors to develop more “values” but one monetary 5. ESG is not a rating matter but a delivery of verifiable results from planning and execution, not a linear profit only

Communication of your ESG Story doesn't have to be a communication about " Everything you do". Communicate only what is important for your stakeholders and do it in a way that is understandable for them.

Your ESG efforts deserve to be heard because every sustainable change starts with a story. Be transparent and authentic about how your company addresses environmental, social and governance challenges. Use various channels such as social media, sustainability reports and press releases to share your successes, learnings and goals. Your ESG story should inspire and show how your company is making a positive contribution. Be a role model! This will not only encourage customer engagement but also strengthen your brand in a competitive market. Remember that a well-communicated ESG strategy raises awareness and encourages others to follow your example. Be the storyteller who helps shape change.

An authentic ESG story must seamlessly integrate with your brand identity, reflecting your company's core values and long-term commitments. It's essential to align with core values and aren't just marketing buzzwords but are embedded in your business ethos. To incorporate ESG into the brand story, weave your ESG goals into the broader narrative of your company, highlighting how these initiatives are integral to your mission. Leadership and employee engagement is key; having passionate advocates within your organization. Being transparent and honest in sharing successes and challenges builds trust with stakeholders, while a focus on long-term goals. To make ESG story more relatable, engage with stakeholders to collect feedback.

ESG?is?a?core?component?of everything we do as a business both now and in the future. It is not something we do in addition to other things. It?is?crucial?to?divide?up your many areas of interest?into?focused tasks ...that?you?can?lead?and where you can make a significant difference. Furthermore,?the scope will frequently depend on the industry you work in. Focus is essential. A lot of businesses actively support the SDGs set forth by the UN. But it makes sense to focus on areas where the organisation can have the biggest and most significant impact rather than trying to achieve all 17 goals and exhausting yourself in the process.

Upskill your teams with Carbon Literacy Training to ensure they can communicate your company’s policies with confidence, and understand the reasoning that underpins them. A well-supported team gets the best results. Ensure they’re on that journey with you.

Sustainability leadership starts with deep self organizational awareness as to the purpose of the busienss, the implications of its existence on the world, and the tradeoffs the business is prepared to offer short term to ensure a sustainable long term. Many companies and business leaders mistake sustainability leadership for extensive ESG data collection and disclosure. ESG leadership is less about reporting and more about reflecting on the above, and executing on it. Finally, as Roy T. Bennet says, "It’s only after you’ve stepped outside your comfort zone that you begin to change, grow, and transform." As such, no sustainability leadership can ever be achieved without taking real risks, and stepping out of your comfort zone.

To ensure ESG leadership success, prioritize leaders who embody accountability and alignment with stated values. Leaders must integrate ESG metrics into their KPIS, look at Solvay example! as way to foster a culture of responsibility. Actions by Leaders speak louder than corporate principles and regulations. If advocating for diversity or environmental goals, leaders should personally embrace sustainability practices, avoiding contracting in behavior, example: recent TATA Consultancy Services CEO picking an all-male leadership team and promoting D&I on company campaigns. Having an approach that builds authenticity is key!

Success in your ESG efforts depend on how you involve and enable 1. Employees 2. Vendors 3. Customers 4. Communities you serve 5. Investors ESG is not a stand alone act ; it’s about the entire supply chain and value chain. Examples. #cocacola #H&M #Nike #apple #infosys #cisco #unilever #nestle #dassault Look at any of their sustainability reports. You will see complete involvement of all stakeholders within the supply chain.