ESG Roadmap, Steps & Mistakes

A few days back, we started to check the sustainability and ESG reports of a few companies, and we found out that most of them are well designed with excellent graphics nice pictures. Unfortunately, the metrics are undefined and/, or KPI is missing.

When you design an ESG roadmap, you can build an excellent report to drive the goals towards achievement if you follow bellow tips and structure:

1. Ensure that Organizational Commitment is well defined and transposed in the report, be aware of the Legacy you leave behind!?Commitment?and?Legacy?are the core of ESG strategy and all metrics we built around them.

2. Transparency: Be prepared to discuss the issues and challenges, not only the positive and easily achievable targets. ESG report with no?Threats?is detrimental in front of investors. As a consequence, the company's image and ESG strategy are questionable.

3. The essential differentiator in reporting is progress monitoring through?defined metrics. Precisely determine the formula, source of data, thresholds and algorithms. KPI and KRA are the factors that build the credibility and authenticity of the company ESG journey.

4. The report must be?accessible, and this we ensured through the digitalisation using explicit, simple language in the content.

Steps REDT is using in defining an ESG Roadmaps are:

Project 1: ESG – Strategy & Roadmap Creation

• Materiality Assessment
• Advice on Sustainability Framework???
• Benchmarking and advise on Sustainability Goal setting
• Sustainability Report Assurance Preparedness
• Report Development
• ESG Governance Manual and Tenant Handbook??
• Advice on Roadmap based on Sustainability Framework
• Guidance on ESG Risk Assessment

PROJECT 2 – RED T – ESG dashboard adoption

• Data aggregation & storage???????????????????????
• Algorithm implementation
• Defining users & Online reports User Interface
• Training
• Go live

All described steps are simple, but simplicity is the key to delivering a crisp and clear message. Today, companies' data strategy is more critical in the complexity of ESG requirements and importance.

Next week's article will explain each strategy's?sustainability reporting landscape?adoption based on regulation, ESG Rating Indices and Global Goals Alignment.