ESG Phase 3: strategy and action plans
Do you need help with formulating an ESG or sustainability strategy? If you don’t have a clear understanding of your current situation and your ambitions, it is difficult to take effective steps towards having a sustainable organisation. Baker Tilly can help you with this by drawing up an ESG framework for you. We work towards having an integrated strategy based on four phases. Phase 3 in the ESG framework is about converting your mission, vision and ambitions into a focused strategy.
ESG framework
The strategy and action plans form phase 3 of the ESG framework developed by Baker Tilly. In total, there are four phases, divided into eight steps. Based on these phases, we work towards an integrated strategy and your sustainability report, one step at a time.
From planning to strategy
During the second phase of the ESG framework, you established your starting point, your ambitions and your goals. You have a clear idea of what the gaps are. Now it’s time to take all of your ideas and turn them into a concrete strategy. The strategy includes a long-term roadmap, which sets out the value drivers needed to achieve your ambitions.
What are the internal and external environmental factors? And how are you going to respond them? An integrated strategy incorporates financial, environmental, social and societal goals. The strategy is closely linked to your company’s DNA and mission of your organisation.
How do you decide on the areas requiring your attention?
Business environmental analysis
Organisations never operate in a vacuum: they affect and are affected by society, suppliers and others. We carry out an environmental analysis to find out how the environment affects your organisation. For instance, we look at the countries and the sector in which you operate, and the associated risks. We also investigate company-specific elements that may influence your organisation’s strategy and policies.
Determining impact areas
You can’t do everything all at once. That’s why it’s important to prioritize and have focus in your ESG strategy. We do so on based on the material themes we identified for you during Phase 1. We examine the key impact areas to determine together with you what the focus of your strategy should be.
From purpose to action
Working from your current position towards a long-term vision requires a strategy: a substantiated way to achieve your goals. Based on the mission and vision of the organisation and its ambitions, we determine the strategic directions and actions that you will need to realise those ambitions.
KPIs and action plans
We link KPIs to the strategy so that we can monitor the progress of a strategic goal. That way you can guide your progress and the results.
We recommend setting up a KPI dashboard that you can use to monitor the progress of the objectives you have set. It is also a good foundation for Phase 4: reporting.
