To help companies in determining the right path and select their priorities, Finch & Beak has designed the ESG Program Canvas, a tool to turn ESG results into concrete actions and to keep up with the rising requests for ESG information. In a workshop with about four to eight participants, the canvas aims to determine how the current ESG rating outcomes from sources such as DJSI, MSCI, CDP and Sustainalytics relate to your company’s sustainability approach and determine effective interventions and actions.
Time required: 2½ hours
As groundwork for the workshop, the facilitator prepares an analysis to summarize the existing company’s ESG scoring on the provided criteria such as climate change strategy, labor conditions or governance. Typically, this is accomplished by creating a simple heatmap that exhibits the company’s backlog on the individual criteria to the industry sustainability leaders. In the exceptional case that the industry leader’s score is not readily available, the relative score level can be estimated by developing a rough industry ceiling from the annual reports and sustainability programs of selected competitors.
1. The workshop itself starts by filling in the sustainability strategy checklist (refer to the table) in a plenary brainstorming format.
2. Once the checklist has been completed, the results can be compared against the heatmap score of the industry sustainability leaders and the ESG criteria that are emerging as weak spots can be determined. This two-way mapping process uncovers the main ESG performance gaps from both data analysis as well as team experience.
3. To start planning for improvement, identify possible causes of the ratings outcome from the sustainability strategy checklist in groups of two to four participants and ask the groups to come up with ideas for improvement. In a plenary format, all interventions and actions can be shared and then clustered and mapped in the Interventions & Actions section by jointly estimating their impact and feasibility. In some cases, the group was able to reach a consensus on the priorities, so only a few interventions were required, One illustration is that of a company in the building materials sector where, during the application of the ESG Program Canvas, the team decided to bundle their efforts on improving the structure of health and safety reporting in their industry and on the impact measurement of their business.
4. After the workshop, a summary of the most appropriate interventions is prepared including the ownership of the action points and timing.
The ESG Program Canvas, as well as many other tools can be found in Winning Sustainability Strategies (Palgrave 2018, Leleux and Van der Kaaij) which presents numerous award-winning cases from IMD business school and examples from companies such as Unilever, Torres, Patagonia, Tumi, DSM and Umicore alongside original ideas based upon 20 years of consulting experience.
If you are looking for support in effectively analyzing, consolidating and translating your ESG ratings scores into improvement, get in touch with Bas Nuijten, Senior Consultant, at email@example.com or call +31 6 28 02 18 80 to learn more about our customized approach.