The acronym ESG (Environmental, Social, and Governance) represents a transformative megatrend reshaping economies and redefining business success. Sustainability is a business imperative, a societal responsibility and compliance requirement.
Companies that establish effective ESG practices ensure a resilient supply chain thus fostering operational stability, minimizing risks, and maintaining competitiveness in an increasingly volatile and dynamic business environment. Moreover, effective corporate good governance is essential in periods of rapid change to ensure optimal decision making.
Workforce disputes or consumer advocacy actions can directly affect a company’s profitability by creating a scarcity of skilled employees or controversy that is damaging to a corporation’s reputation. Corporations that ensure their products and services do not pose safety risks, and/or minimize the exposure to geopolitical conflicts in their supply chains, tend to face less volatility in their businesses.
Compliance requirements are essential for ensuring legal adherence, mitigating risks, safeguarding reputation, and fostering trust among stakeholders, all of which are critical for sustainable organizational success.
Companies’ adherence to ESG frameworks and regulations ensures their sustainability in the long term.
ESG is no longer a trend, it has become a necessity for organizations and businesses for several reasons:
Guarantee for sustainable investments
Sustainable investing assets exceeded 30% of all assets under management in 2020. Reflecting that Investors are increasingly focusing on ESG factors when making investment decisions.
Brand Enhancement:
Over 50% of consumers globally are willing to pay more for products and services from companies committed to positive social and environmental impact. This consumer preference enhances brand loyalty and market share.
Regulatory Compliance and Trust
More than 70% of investors believe that companies that prioritize ESG initiatives represent better opportunities for long-term returns. Prioritizing ESG enhances stakeholder trust, including customers, employees, regulatory authorities, and investors.
Environmental:
This factor evaluates how a company acts towards its environment, considering its use of natural resources, preserving biodiversity and the environmental impact of its operations.
Social:
This factor focuses on how a company manages relationships with its stakeholders, including employees, customers, and the broader community. It encompasses areas such as workforce relations, health and safety, diversity and inclusion, and respect for human rights and labour conditions.
Governance:
This factor assesses the sustainability of a company's decision-making processes, including the distribution of rights and responsibilities among different participants in the corporation, such as the board of directors, managers, shareholders, and stakeholders. It also considers factors like director liability, and governance models.
ESG Performance Measurement and Reporting: Tracking progress against sustainability metrics. Adopting global frameworks like GRI or SASB standardizes reporting. Monitoring indicators such as carbon emissions, water usage, diversity, and governance practices.
Current State Assessment and Gap Analysis: Evaluate current department practices to establish a clear understanding of the existing state, identifying strengths and improvement areas. Identify gaps between the current state and the target state providing actionable insights to bridge these discrepancies.
Transformation Strategy: Define a target state situation aiming at, and the initiatives and roadmaps that enable to reach the target state
Operational Excellence: improve the outcome of an organization: cutting cost, streamline processes, reduce lead time of activities, and improve the quality of the outcomes.
Policies and Procedures: Develop comprehensive policies and procedures that align with best practices as well as national and international standards
People: improve the organizational structure, workforce size, and skillsets to align human resources with strategic objectives.
Systems and Business Requirements Documents: Support system enhancements through detailed Business Requirements and quality assurance during implementation.
KPIs and Dashboards: Design key performance indicators and dashboards to monitor progress, provide real-time insights, and support decision-making.
Change Management: Tailored communication strategies, effective training programs, stakeholder engagement initiatives, and proactive resistance management, etc.
Knowledge of International Best Practices: We bring a deep understanding of global ESG standards, including ESRS and GRI frameworks, enabling us to deliver integrated solutions that align financial precision with sustainable and responsible governance practices.
Expertise in Local Regulations: With extensive experience working alongside market leaders in the region, we possess in-depth knowledge of local ESG regulations and practices. This enables us to provide best in class services for our clients.
Proven Track Record in ESG: We have successfully supported major companies and government entities across the MENA region, demonstrating our capability to drive meaningful impact.
Performance Management and KPIs: we support organizations define clear and material ESG metrics and establish frameworks for continuous improvement, ensuring operational excellence and long-term sustainability
Need further information about our ESG offerings, and how we can support you reach your strategic objectives, please contact us.