Name: ESG commitment to action: A five-point plan
Uploaded: 2023-04-11T13:42:48.496Z
Duration: 304.14
Description: Despite the recent push for increased sustainable practices, a large number of the biggest companies still lack a clear ESG strategy roadmap. So what's stopping them? Consultant John Goddard gave us an overview current situation and suggests a five-point action plan to kickstart your ESG strategy help you move from commitment to action.

Fivepoint plan to move from commitment_V5.mp4

Five point plan.vtt

English

{{00:00:08}}
Over the last two years, we have seen
how organizations have increased the

{{00:00:12}}
pace for which they are establishing
their sustainability agendas.

{{00:00:17}}
With environmental, social and governance factors,
challenging senior management boards to make

{{00:00:23}}
difficult trade-offs and new strategic choices.

{{00:00:28}}
What we observe is that many companies
are finding it challenging to

{{00:00:32}}
achieve their ESG targets and goals.

{{00:00:39}}
I would like to share a five-point plan
for action that any organization can adopt

{{00:00:44}}
to give it a better chance of delivering
on its sustainability goals and strategy.

{{00:01:00}}
Despite the commitments and intent, we
note that a significant number of the

{{00:01:04}}
largest global companies are struggling
to progress their emissions ambitions.

{{00:01:10}}
While 82 of the FTSE 100 companies
have committed to net zero.

{{00:01:14}}
So far, only 40 of these organizations
have aligned with the Science-Based Targets

{{00:01:19}}
initiative and therefore 60% having yet to
establish clear net zero roadmaps that investors

{{00:01:27}}
and third parties can take comfort from.

{{00:01:36}}
The single most significant barrier to
delivering an organization's long-term

{{00:01:44}}
sustainability ambition is a lack of
strategic alignment across key stakeholders.

{{00:01:51}}
So how do organizations need
to address these challenges?

{{00:01:55}}
I would like to share a five point plan
for action that any organization can adopt.

{{00:02:12}}
Firstly, it is critical for senior
management and boards to drive strategic

{{00:02:17}}
alignment across the organization.

{{00:02:22}}
There are two really important aspects,
being sure to establish a common

{{00:02:28}}
language for sustainability initiatives.

{{00:02:32}}
This is important at the board level,
at the executive team level, and

{{00:02:36}}
with divisional management, and then
cascading this through the organization.

{{00:02:42}}
The second aspect involves developing a
clear vision and goals for the organization,

{{00:02:47}}
embracing, sustainability and then identifying
the key strategic choices required to

{{00:02:53}}
achieve these goals, particularly the
where to play and how to win choices.

{{00:03:03}}
Having identified this key strategic choices,
prioritise those that support and accelerate

{{00:03:09}}
the organization's sustainability goals in
areas such as a company's product portfolio.

{{00:03:15}}
It's brand position.

{{00:03:17}}
It's innovation, strategy and operations.

{{00:03:21}}
This is where organizations need to analyse the
financial and non-financial benefits of each

{{00:03:26}}
choice that helps achieve the stated ESG goals.

{{00:03:37}}
The third element of the plan is to create an
agile organisation that can respond to the new and

{{00:03:44}}
challenging demands that sustainability brings.

{{00:03:47}}
In doing so, make sure the required
skills and capabilities are identified

{{00:03:54}}
and to the extent needed, addressed, and
upgraded through training and recruitment.

{{00:04:05}}
It is critical to establish clear KPIs.

{{00:04:09}}
Organisations need to define what is required
to achieve their goals and targets, be it

{{00:04:13}}
energy usage, supply emissions, gender pay,
diversity, women leadership, employee training.

{{00:04:22}}
Set up KPIs that will allow progress to be
tracked, measured and reported frequently.

{{00:04:34}}
Finally, we would strongly recommend
aligning compensation to these new KPIs

{{00:04:40}}
to incentivise and reward performance and
progress towards sustainability and ESG goals.

{{00:04:49}}
I hope you found the insights from our
research and perspectives on how to implement

{{00:04:54}}
an effective sustainability strategy helpful.

Over the last two years, we have seen
how organizations have increased the

pace for which they are establishing
their sustainability agendas.

With environmental, social and governance factors,
challenging senior management boards to make

difficult trade-offs and new strategic choices.

What we observe is that many companies
are finding it challenging to

I would like to share a five-point plan
for action that any organization can adopt

to give it a better chance of delivering
on its sustainability goals and strategy.

Despite the commitments and intent, we
note that a significant number of the

largest global companies are struggling
to progress their emissions ambitions.

While 82 of the FTSE 100 companies
have committed to net zero.

So far, only 40 of these organizations
have aligned with the Science-Based Targets

initiative and therefore 60% having yet to
establish clear net zero roadmaps that investors

The single most significant barrier to
delivering an organization's long-term

sustainability ambition is a lack of
strategic alignment across key stakeholders.

So how do organizations need
to address these challenges?

I would like to share a five point plan
for action that any organization can adopt.

Firstly, it is critical for senior
management and boards to drive strategic

There are two really important aspects,
being sure to establish a common

This is important at the board level,
at the executive team level, and

with divisional management, and then
cascading this through the organization.

The second aspect involves developing a
clear vision and goals for the organization,

embracing, sustainability and then identifying
the key strategic choices required to

achieve these goals, particularly the
where to play and how to win choices.

Having identified this key strategic choices,
prioritise those that support and accelerate

the organization's sustainability goals in
areas such as a company's product portfolio.

It's innovation, strategy and operations.

This is where organizations need to analyse the
financial and non-financial benefits of each

choice that helps achieve the stated ESG goals.

The third element of the plan is to create an
agile organisation that can respond to the new and

challenging demands that sustainability brings.

In doing so, make sure the required
skills and capabilities are identified

and to the extent needed, addressed, and
upgraded through training and recruitment.

Organisations need to define what is required
to achieve their goals and targets, be it

energy usage, supply emissions, gender pay,
diversity, women leadership, employee training.

Set up KPIs that will allow progress to be
tracked, measured and reported frequently.

Finally, we would strongly recommend
aligning compensation to these new KPIs

to incentivise and reward performance and
progress towards sustainability and ESG goals.

I hope you found the insights from our
research and perspectives on how to implement

an effective sustainability strategy helpful.

Best Practice

Despite the recent push for increased sustainable practices, a large number of the biggest companies still lack a clear ESG strategy roadmap. So what's stopping them? 
Consultant John Goddard gave us an overview current situation and suggests a five-point action plan to kickstart your ESG strategy help you move from commitment to action.

john goddard.jpg

John Goddard

Vice Chair for Sustainability and Partner

Understand the present scenario, including the number of companies that have commitments but are yet to act.

The current situation

Find what challenges FTSE100 companies face when it comes to ESG commitments

The main challenges

Find out the five concrete steps that can help you to implement a plan to go from commitment to real action in a business ESG strategy