ESG transformation

A comprehensive ESG strategy enables a company to address environmental and social risks and capitalize on emerging commercial opportunities as the world shifts to a more sustainable economy. To get there, a clear understanding of the complex and evolving policy, regulatory, and business environment issues is required, along with the ability to translate these issues into clear business objectives.

Similarly, it is important for organizations to approach their ESG transformation efforts through a customer-centric lens – i.e., integrating ESG into your company’s broader customer and product strategy. To effectively achieve this, businesses must also integrate ESG principles into their corporate strategy – right from top level decision making to market-facing execution. Every strategic business decision must be made with an understanding of how it might impact the business’ sustainability goals, including reducing emissions, driving inclusion, diversity and equity (ID&E), enhancing ESG reporting and so forth.

If a company can effectively implement its ESG transformation efforts from both the customer and strategy angles, it can simultaneously increase its long-term growth and profitability prospects while anticipating, meeting and even exceeding evolving customer needs.

How this is achieved will look different for each sector, but KPMG professionals can ease the ESG transformation and implementation process and help our clients navigate the complex ESG landscape by building a more resilient business that is fit to adapt to market and regulatory change. We place a strong focus on the human side of transformation — enabled and scaled through technology and alliances — to bring your workforce, suppliers and customers along on the journey to meet your ambitions to become a competitive, purpose-driven business.

• How are you identifying and prioritizing the most material and relevant ESG issues that align with your business context and stakeholder expectations?
• How will you demonstrate your commitment to your ESG strategy and ensure engagement throughout the organization – from frontline staff and operations to the back office?
• Have you seamlessly integrated ESG considerations into your broader business strategy to drive long-term value creation?
• Which technologies are you using to accelerate your ESG transformation? Do you have access to accurate ESG data to inform your decision-making and measure your progress effectively?
• Have you established clear change management, governance, and accountability mechanisms to ensure the successful implementation and adoption of your ESG initiatives?

• Define their ESG ambition and assess foundational risks, opportunities and material topics in consultation with key stakeholders
• Develop a roadmap to achieve their ESG targets
• Design, plan and implement the business transformation necessary to achieve their ESG ambitions
• Oversee the successful implementation with program management, data management (including technology platforms), project management, and change management and learning
• Enable monitoring and reporting for continuous improvements