//From the Triceps Scaling Up Business Practise
Business Transformation: ESG a License to Operate
The connection between an EU administrative obligation and scaling-up might not be immediately clear, but it does exist!
“You’ve likely come across the term ESG. Is it just another EU mandate, or could it be an opportunity to strengthen your business?”
We believe it is the ladder. ESG – Environment, Social and Governance – is a way to coherently challenge the vision and mission of your business and offers a better license to operate. If ESG is taken seriously, investors will take your business seriously.
EU regulation: CSRD: The first mention of ESG can be found in an investors report: “Who cares wins”. It was published about a decade ago as an investment compass. Today ESG is the sustainability benchmark for business.
And yes it is true, from 2024 and onwards larger businesses in the EU have to report on ESG with a double materiality analysis. This is called CSRD (Corporate Sustainability Reporting Directive). Larger businesses have 250+ employees and a yearly net turnover of 40 million euros.
Position ESG as an opportunity to validate your strategy
If you see ESG as an opportunity, let CSRD be the trigger to cease it. The time is now. ESG is not as complex as some try to tell you. ESG is essentially about good business practices. It’s about organizing effectively, benefiting both internal and external stakeholders. By focusing on ESG, you’ll develop a long-term strategy and gain insights into material and energy availability, strengthening your business
Some of the world’s most well-known brands are leading the way. They did their ESG math years ago. For sure ESG supported them to take the lead in their industry. Ultimately, ESG is about reimagining the use of materials and energy, and finding innovative ways to connect people with your company, products, and services.
Assess your company’s ESG position
Assessing your business on Environment, Social and Governance is step one. This way you know where you are and how you compare to business equivalents. The assessment will be two ways: What is your influence on the environment and vice versa. This is what they call double materiality (what is material to you and to the world).
The E in ÉSG covers five main topics, the S includes four main topics, and the G has only one main topic, with all topics being interrelated as shown in the table. If you work on the E, people in the S will be more happy to engage with your company. In our view E1 and E5 are therefore the most extensive, where in E5 you actually arrive in the solutions space: the circular economy. And exactly that is where the tables turn.
“Consider ESG as an opportunity and evaluate your organization from a solutions-oriented perspective. ESG will serve as a co-pilot to help navigate the turbulent waters of the 21st century”
Triceps supports you and your company with our consultants, chiefs on demand, partnerships, and specialists. Thijs and Marc teamed up to enable ESG Business Transformation by introducing ESG maturity metrics for organisations. We’ve prepared an introductory ESG assessment on the website.
Marc A. Timmermans
Managing Partner Triceps Scaling Up Business
Thijs Struijk-Kafchi
Founder and Product Innovator at Mission Guide
Triceps helps leaders and organisations achieve their goals. Through our matching, coaching and chief on demand, you as an executive or company shift to the next gear.
Curious how we can help? Contact us at 088 – 5000 500 or send us a message with how we can assist you!