In chapter 3.3 ESRS, the CSRD compliance framework, shows to what extend ESG reporting can help to get an understanding of the importance of sustainable development in business. ESG transformation however goes beyond compliance and reporting.
For this reason the Framework for ESG Strategy and Transformation, hereafter called FEST, was created by the people of Mission Guide. FEST is based on the structure offered in the ESRS compliance framework. This makes its easier to use CSRD compliance data for ESG strategy development.
The main enhancement in FEST is the addition of a solutions layer that positions the circular economy, (bio)diversity, the workforce and the buyers or end-users as part of the solutions space. A strategy that focuses on the solutions layer will mitigate or even avoid the risks at the same time.
FEST (Framework for ESG Strategy and Transformation) in a nutshell
FEST is based on the simple idea that investing in E5, the circular economy and in S1, the workforce holds the key to successful ESG transformation. As was discussed in earlier chapters of the Handbook for ESG Strategy & Transformation, sustainable development is a movement directed by an engine called the circular economy (E5) powered by operators: the workforce (S1).
In the representation above FEST shows three layers:
- Layer 1: ESG
- Layer 2: E, S or G
- Layer 3: E1 - E5, S1- S4 and G1
Layer 3 represents the risks and solutions layer. In the ESRS framework there are two more layers. Layer 4 zooms in on the chapters, for example E1.1 to E1.9. The final 5th layer is the data layer which is then categorised with PDCA labels. (PDCA = plan do check act)
FEST also has a layer 4 which is a more concrete follow up of the risks and solutions assessment and describes the "how to". In the 5th layer it is possible to connect guest frameworks that are specifically designed for data collection for the risks and solutions space.
What are risks and solutions ans why are some chapters both?
In FEST there is a hard distinction between risks and solutions. Although climate change could offer an opportunity for new business, climate change on itself is not a business solution. Solving climate change is seen as something different than solutions for ESG transformation. This is important to understand.
