More and More Companies are Incorporating ESG. Now What?
The Malaysian government has also been accelerating the nation’s adoption of sustainable ESG practices through various initiatives such as the i-ESG Framework, Domestic Investment Accelerator Fund (DIAF), and the MADANI Smart Automation Grant (SAG MADANI).
In essence, now is the time for companies to act on ESG issues. There is growing interest and awareness about ethical responsibility towards the environment and society at large. Acting on ESG is not only essential but also the right thing to do.
Here are five insights and actions to help incorporate ESG-driven strategies in every operation of your company, according to Deloitte.
5 Insights You Should Know
1. Organisations often fail to realise ESG plans due to lack of prioritisation, clear ownership, and a cohesive approach.
2. Many organisations can’t make sense of ESG data or leverage it to drive business objectives, resulting in fragmented views and compliance challenges.
3. For consumer-facing organisations that manage complex supply chains, these third-party ecosystems can impact their ESG strategies.
4. Consumers are demanding more transparency on ESG matters, preferring brands with a small environmental footprint and responsible sourcing.
5. Scientists urge halving emissions by 2030 and reaching net zero by 2050 to avoid severe climate impacts, requiring rapid end-to-end business transformation.
5 Actions You Can Take
1. Bake it in your strategy:
Define ESG priorities with specific objectives, targets, and performance indicators, and embed them within corporate strategy.
2. Get your data right (simplify it):
Collaborate across the business ecosystem to simplify data collection, synthesis, and reporting for ESG strategies.
3. Choose your companions wisely:
Prioritise relationships with minority-owned and environmentally responsible organisations, and monitor their impact on ESG priorities.
4. Tell your story:
Communicate ESG vision clearly and transparently to win consumer support and allow them to follow your sustainability journey.
5. Be innovative:
Adopt new technologies and sustainable practices to transition towards a net-zero economy, focusing on transforming business models.
At Vision Building, we can help ensure that ESG is the watchword on all fronts of your team, organisation, or company.