Evaluation of the level of maturity of the ESG in the organisation is not only a diagnostic exercise – it is simply a strategical tool for hazard management, reputation and development. First of all, it allows identification of gaps and riskswhich may have a real impact on the business.
In talks with entrepreneurs and business leaders, the subject of ESG (Environmental, Social, Government) frequently causes confusion. 1 of the most amazing statements we frequently hear is: “But we do not have an ESG” and: “But we do not have an work to have an ESG”. These sentences, although expressed with conviction, are incorrect in their essence – most frequently due to the recognition of the ESG with formal reporting, certification or the presence of a dedicated sustainability team. In the meantime, the ESG is not something that is ‘no’ or ‘no’ – it is not a product that can be put into offer, nor a procedure that can be implemented overnight.
ESG is not a choice – it is simply a fact
ESG is simply a spectrum of practices, risks and opportunities that each company, regardless of industry, size or level of formalisation, performs to a greater or lesser extent. frequently unconscious. Examples? The company that cares for work safety implements an excellent component of the guidelines in the field of “S” (social). A company with a transparent ownership structure, regularly carrying out audits, operates in the ‘G’ area (corporate governance). The production plant investing in energy-efficient technologies takes action on "E" (environment).
Sustainable improvement is not a label
So the question we should be asking ourselves as leaders is not: ‘Do we have an ESG?”, But rather: ‘What level are we at?”. This shifting position allows for a more constructive conversation – not a lack, but a factual state. ESG is not a description that can be attached to itself, but a process of ripening an organization that is worth understanding, measuring and developing. It is simply a set of practices and decisions that affect the environment of the company, its stakeholders and its long-term value. Each company has its own individual level of compliance with ESG standards and standards, resulting from its history, strategy, operational structure and organizational culture. And this level – not its presence or absence – should be the subject of analysis.
Why is it worth measuring?
Evaluation of the level of maturity of the ESG in the organisation is not only a diagnostic exercise – it is simply a strategical tool for hazard management, reputation and development. First of all, it identifies gaps and risks, which may have a real impact on the business. deficiency of environmental policy, opaque governance principles or insufficient social action may lead to regulatory, operational or reputational risks. Their early detection allows them to take corrective action before they become the origin of the crisis.
Secondly, informed management of the ESG is simply a way of building a competitive advantage. Companies that can show that their actions are socially and environmentally liable are gaining the trust of customers, investors, business partners and employees. At a time erstwhile consumers are increasingly guided by values and investors are analysing ESG indicators before taking capital decisions, transparency and commitment to sustainable improvement become a real marketplace asset.
The 3rd equally crucial reason is to prepare for a changing regulatory environment. A increasing number of countries and institutions, including the European Union, introduce non-financial reporting obligations in line with standards specified as ESRS and CSRD. Companies that have previously diagnosed their ESG level will be better prepared to meet these requirements, avoiding costly and chaotic corrective actions at the last minute. Early diagnosis is besides an chance to organize data, processes and responsibilities within the organization.
ESG level measurement is not only a consequence to external expectations – it is an interior tool for development, resilience and strategical management. This is the first step to make ESG not only a work but a origin of value.
ESG Maturity Map
Dear leaders and leaders of the future, that is why today, even if the company in which you operate is not obliged to report, we encourage you to make an ESG maturity map.
The ESG Maturity Map is simply a diagnostic tool that allows the company to find at what phase of improvement it is in environmental (E), social (S) and corporate governance (G) management. It is simply a "road map" that shows where the company is today, where it should be and what steps it must take to scope a higher level of maturity.
A typical model includes 3 to 5 levels, for example:
- Reactive — No formal ESG policies, action taken only in consequence to external pressure.
- Conscious – recognition of risks and opportunities of the ESG, first policies and objectives.
- Integrated — ESG as part of business strategy, measuring indicators and reporting.
- Proactive – ESG as a origin of innovation and competitive advantage.
- Leader — ESG rooted in organizational culture, the company sets manufacture standards.
Maturity maps are usually divided into thematic areas (E, S, G), which allows to identify strengths and gaps in the company's activities. Their implementation facilitates improvement planning, communication with stakeholders and preparation for reporting in accordance with ESRS, GRI or CSRD.
Benchmarks – compare with others
The next step we encourage you to take is to revise your manufacture benchmark, which is circumstantial benchmarks for your company.
Industry Benchmarks are sets of data and indicators to compare the degree of maturity of your company's ESG with another organisations operating in the same manufacture or with a akin scale of activity. They supply answers to questions: Are our actions sufficient?Are we the leader, or are we just catching up?Where are our biggest gaps and opportunities?
These include, inter alia:
- E (environment): CO2 emissions, energy consumption, RES share, waste management.
- S (social): worker turnover, equal pay, diversity, occupation security.
- G (corporate governance): board structure, transparency, anti-corruption policies.
Sources of data for specified manufacture benchmarkes include competition ESG reports, database (Sustainables, MSCI ESG), manufacture reports and company interior data. Benchmarks aid not only to measure but besides to justify investment and build assurance among stakeholders.
ESG – the foundation of modern management
There are no companies “without ESG”. There are only companies that have not yet examined their maturity levels for sustainable development. alternatively of denying the existence of an ESG, it is worth measuring, knowing and consciously developing them. It is not just a substance of work – it is an chance for better management, greater resilience and sustainable business value. It's besides the only way to be the leader of the future.
