With government legislation set to tighten on the way to net zero by 2050, businesses need to ensure that they are paving the way for decarbonisation across their supply chains.
With significant complexity in the global supply chains of large organisations, developing and implementing data-backed Environmental, Social and Governance (ESG) strategies not only enhances company reputation but also reduces operational risks and presents growth opportunities.
At Vendigital, we have proven consulting expertise to support your organisation in assessing relevant ESG issues, and create and roll out strategies that enhance long-term value, resilience and growth potential. Our experienced consultants have an in-depth understanding of each of the ESG areas and can support clients in determining what changes are necessary or beneficial and how to develop the appropriate strategies and execute them throughout the company. Through our proprietary digital platform, we are able to embed analytical capability into organisations to continue to deliver results over the long-term.
When developing and implementing ESG strategies for our clients, we take a comprehensive approach that includes seven key stages.
Materiality assessment helps identify, refine, and assess potential environmental, social and governance issues that can impact a business or its stakeholders and informs organisation strategy, targets, and reporting.
Assessing current baseline
Once the ESG themes are prioritised, the existing policies, metrics, and engagements in the organisation are assessed to understand their current status, identify any silo activity and gauge ESG maturity. This information can be collected from annual reports, policies, and other available data. Our consultants also collaborate with appropriate cross-functional stakeholders within the organisation to leverage their expertise in each priority ESG topic to supplement the data collected.
Setting objectives and goals for the ESG strategy
Once baseline ESG is defined, the next step involves working with key stakeholders to determine the company’s objectives and set ESG -specific goals. Defining goals helps to measure the impact of the activities, improve performance, compare against competitors and track success.
Performing gap analysis
A gap analysis allows an organisation to determine the best way of achieving their ESG goals. It compares the current state and the organisational ESG goals, highlighting shortcomings and improvement opportunities.
Developing a strategic ESG roadmap and framework
With industry-specific experience, our consultants guide clients in developing an ESG framework that outlines the organisation’s vision and purpose to meet its goals and helps communicate these clearly to relevant stakeholders. The development of a roadmap ensures accountability for key milestones and helps track progress.
Setting action plans and KPIs
To ensure effective integration of ESG into business processes and practices, we work with companies to create an action plan and set performance targets, such as KPIs, which support the delivery of strategic changes. As defined measures, the KPIs track progress towards the achievement of these changes.
ESG reports can cover various areas, such as communicating ESG strategy to stakeholders, sharing company-specific ESG goals, and evaluating progress and engagements in key ESG areas. We help companies decide what they need their reports to accomplish and how to report progress. For example, reports can be published on the company website, annual reports, or marketing campaigns. The ESG strategy should be reviewed and updated annually to ensure the organisation stays aligned with current industry standards, stakeholders’ and customers’ expectations and overall business strategy.
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The benefits of best practice
ESG strategy can bring many benefits across an organisation’s supply chain. Using our proprietary digital platform and in-depth consulting experience in numerous industries, we ensure our clients gain maximum value from applying ESG strategies throughout their supply chain activity.
Opportunities & growth
ESG strategy enables companies to identify new markets and unmet customer needs for new products or services. Demonstrating a strong focus on ESG criteria also enhances the likelihood of strategic partnerships, supporting further growth.
Reduced risk and improved resilience
Awareness of ESG issues and proactively anticipating the need for and executing internal change helps to build organisation resilience. This strengthened position enhances crisis management, business continuity and natural resource stewardship, improving cost efficiency and profitability. It also reduces the risk of supply chain disruptions caused by external circumstances, such as climate change activity.
Reputation & stakeholder trust and engagement
Demonstrating a strong ESG strategy attracts and retains B2B and B2C customers and promotes support from greater governmental and community relations. Strong ESG values are also a significant factor in attracting talent while creating better engagement, motivation and productivity from current employees.
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By harnessing digital technologies, manufacturers can create factories and supply chains that are green, lean and equipped to deliver what industries need now and in the future.