Transformation is all about change. A change in structure and/or composition. In business terms this means a structured approach in changing the business model, the business activities and the business outcomes. As ESG is all about materials, energy and people, ESG business transformation is a structural adaptation to the availability of these three core elements of the economy. This is incentivised by new societal expectations and scientific insights.
STEP 1: Make sure the board mandates the development of an ESG strategy
Without an ESG ambassador on board level it will be very hard to go beyond compliance.
STEP 2: Choose an ESG strategy framework that incorporates regulatory requirements
Don't waste money on compliance when you can also invest it in improving the business model and still meet regulatory requirements.
STEP 3: Actor mapping, force field analysis and determine the most crucial themes
Make sure those themes can be translated to board parameters. Because you will need them to mandate the strategy itself as well
STEP 4: Organise the data landscape in line with the chosen ESG strategy framework
This will probably your toughest nut to crack. This is also why an ambassador on board level is important and why the compliance argument could still help you.
STEP 5: Collect all available data that can be matched with the strategy framework
This will need some patience and perseverance. The data is there, but it can be in e-mails, in peoples minds, in spreadsheets, databases, the clouds of certain service providers and with your suppliers. Literally everywhere. Take your time but find it or organise it.
STEP 6: Get an ESG benchmark of your data and determine the ambitions of the board
Again, it is crucial to address the most important board parameters. This will help to set ambitions that match with the steering abilities of the board.
STEP 7: Set goals and set up a change program
Develop a program that starts with small and easy steps. You will need a few quick wins to win some hearts and minds.
These first 7 steps help you to set up a transformation process. It will have required at lot of stakeholder management. But you have done the hardest part.
What's next? Beat the benchmark!
