The practice of making data publicly available to demonstrate an organization’s performance in three important areas—corporate governance, social and environmental sustainability—is known as an ESG strategy. Developing an ESG strategy can feel overwhelming and challenging but with the right tools and practices, organizations can create a plan that supports risk management and promotes positive impact.
The Boston Consulting Group (BCG) and the Maersk Mc-Kinney Meller Center for Zero Carbon Shipping released the “ESG Playbook for Shipping” in February 2023, providing detailed guidance on how to successfully create a credible environmental, social, and governance (ESG) strategy.
4 key characteristics of a credible ESG strategy
#1 Sets time-bound long-term ESG commitments with interim targets
#2 Develops an initiative roadmap for how to achieve targets
#3 Invests in initiatives and governance
#4 Tracks progress and reports using globally recognized standards (ie. SASB, GRI, CDP, TCFD)
5 building blocks of your ESG strategy
#1 Create an ESG baseline
It allows for benchmarking across companies & industries
#2 Identify material topics
It helps to focus on the critical topics
#3 Set ESG targets
Ambitious yet feasible targets are the cornerstone of a credible ESG strategy
#4 Take main initiatives
These can accelerate momentum for prioritized topics
#5 Develop ESG Roadmaps
These provide guidance and the next steps
