ESG - Getting Out the Starting Block
It can be a big leap between, knowing you that need to do something, and knowing what to do to achieve it. This is a real challenge for many AIM listed firms considering where to start with an ESG strategy.
ESG can create an illusion, with its confusing lexicon, greenwashing threat, and evolving regulation, that significant effort and investment is required by firms if they are to respond to the growing need and pressure to do something. For many AIM listed firms, significant investment isn't an option, especially right now, and thus ESG gets pushed down the priority list despite the many benefits that may result in time.
We’d like to challenge this view:
Think of ESG as a brand. Many elements have been around for years, and although you may not think your company is doing anything in ESG, it most likely is, but progress is happening in pockets across the organisation without a consolidated view to the board or stakeholders.
What a firm is doing already, organically, most likely aligns to the company culture and underpins the business model. Both of which are critical success factors for an ESG strategy.
ESG strategy don't need to be complex and multi-faceted. In fact best practice is to focus on only a handful of aspects any any one time. Tackling any priority areas (think regulation and where the biggest opportunities lie), on top of evolving what you're already doing today is a great way to mobilise an ESG strategy.
For AIM firms it’s increasingly important that Boards are able to respond to, and meet the evolving ESG pressures from stakeholders. The risk of divestment and client loss is becoming a reality. On the plus side, the return on investment on ESG initiatives is proven.
Once you ask the right questions, boards will be pleasantly surprised about the level of ESG related initiatives that are already in place.
With our AIM director and board level experience, alongside our ESG knowledge and proprietary ESG data, Addidat can help firms quickly and efficiently get off the ESG starting block and get to a position of to coherently communicate and confidently execute on a right-sized ESG strategy, and benefit from the good work already underway across the firm.
With only a few hours of direct engagement, we are helping our clients to rapidly start reaping the benefits of ESG:
Summarise what ESG means to the firm and what are the important focus areas
Document the ESG initiatives being undertaken across the firm today and the benefits to the company and its stakeholders.
Identify any key risks (e.g. pending regulations) and develop a plan to mitigate.
Identify how to build on the current activities with quick wins to demonstrate continued progress.
Focusing on what is important to the firm and where the biggest wins would be, identify longer-term, strategic focus areas.
Help mobilise ESG governance to monitor and maintain progress, in line with peers and right-sized to the firm's ambitions and approach to ESG.
Build ESG knowledge and understanding of ESG to key team members up to Board level, demystifying the challenges that may be considered and allow the Board to discuss the strategy with confidence.
Support with the current positioning and strategy communication to stakeholders.
If you’re interesting in seeing how we can help you jumpstart your ESG strategy, please get in touch with the team.
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