MPact » Feature
Nine advantages of a true sustainable business model
Why you should care about ESG:
Organizations are facing increased demands from: - Investors - Regulators - Community stakeholders - Employees - Boards of directors
A growing body of evidence is also revealing the long-term, intergenerational benefits of ESG — as well as the risks of not acting now.
MNP ESG Contacts
Edward Olson Leader, Environmental Social & Governance 250.718.8687 | [email protected]
Mary Larson Partner, Consulting Services 514.228.7905 | [email protected]
Kevin Joy Partner, Consulting Services 514.228.7898 | [email protected]
The business landscape is changing at a breakneck pace. Stakeholders are increasingly concerned about the consequences of their consumer, investment, and employment decisions. As people understand more about their place in an interconnected world, the demand for your organization to act in a more responsible, equitable, and sustainable way is becoming ever louder. But how do you do that in a meaningful way that still makes for profitable and innovative business decisions?
A growing body of evidence suggests the long-term benefits of ESG initiatives far outweigh the initial costs. Since many of these advantages accumulate as the program matures, the real risk is in delaying getting started.
Advantages of Adopting an ESG Framework for Business
Create distinct value propositions for clients, partners, and consumers — and offer a clear reason to choose your business over a competitor.
Absorb the costs of socio-environmental changes over your own timeline, rather than face them abruptly when these measures eventually become legal requirements.
Realize measurable benefits as you continuously invest in ESG policy and practice maturity.
Resistance to commoditization
Deliver cultural, social, and economic value that extends beyond your product or service offerings.
Escape zero-sum business planning and shift toward more circular, longer-view economic thinking.
Better value for investors and stakeholders
Reduce investor risk and provide a more reliable return on investment.
Reshape value chains
Support network effects that enhance the impact and benefits of ESG efforts as they become more commonplace.
Reduce your dependence on finite resources and increase your ability to do more with less.
Clearer purpose and brand identity
Build strong relationships with employees, customers, investors, and stakeholders who resonate with your values and are loyal to your objectives.
And, an important caution, there is no shortcut or one-size fits all approach to gaining these organizational benefits. You need to go through the planning process and design an authentic ESG approach that reflects your needs and circumstances to reap the rewards.
A sustainability maturity model is a helpful reference to assess the progress of corporate ESG efforts. MNP’s sustainability model categorizes ESG issues into the critical components — operations, stakeholders, governance, strategy, and reporting — that drive a successful sustainability program.
Owners and directors can reference their company’s position against this model to:
- determine the current maturity of their organization’s ESG strategies;
- assess how the company’s efforts compare with those of other organizations; and
- identify ways to improve the organization’s approach to reporting on ESG matters.
How MNP can help with your ESG journey
Financial materiality and alignment
We can help you identify financially material ESG factors that may have a serious impact on your business and ensure they are aligned to your values, stakeholder concerns, and societal norms.
Building your business case
We can help you review any existing ESG reports, filings, and initiatives, and assess your requirements. Together, we will identify opportunities and risks, and assess engagement requirements across board, management, and other stakeholder groups.
Defining and executing your ESG strategy
We can help you define the value proposition, desired outcomes, and desired level of maturity. We’ll then drill down on specific ESG factors, targets, and key performance indicators to define a measurement, monitoring, and reporting framework.
Maturing and optimizing your ESG program
We can work with your team to optimize the effectiveness of your ESG program, measure how well it is integrated with existing organizational, cultural, and enterprise risk management strategies, and evaluate the quality of your reporting.