ESG strategy 101 - From Obligation to Opportunity
From day dot, Known Impact has had an opportunistic lens on ESG and Impact. Every business has an opportunity to create positive change and empower informed decision making - for all stakeholders.
Why ESG Strategy Matters
Businesses today face growing expectations to integrate Environmental, Social, and Governance (ESG) principles into their operations. A strong ESG strategy isn’t just about compliance—it’s a competitive advantage that attracts investors, engages employees, and builds long-term resilience.
But where do you start?
In this blog, we’ll walk you through how to develop an ESG strategy, what to include, and how to measure success.
Start with Why: Define Your ESG Goals
Every ESG strategy should be purpose-driven and aligned with your business model.
Think about why ESG is important for your business and what role sustainability plays in your industry. Consider which ESG issues matter most to your stakeholders—investors, employees, and customers all have different expectations. Finally, set a vision for the next five to ten years. What impact do you want to create, and how will ESG help you get there?
A clear ESG purpose sets the foundation for an authentic and effective strategy.
Assess Your Current ESG Performance
Before implementing an ESG strategy, evaluate where your business currently stands.
First, review the regulatory landscape to understand what laws and reporting requirements apply to your industry. Conduct a materiality assessment to identify key ESG risks and opportunities specific to your business. Finally, engage with stakeholders to understand their expectations and concerns regarding ESG initiatives.
Tools like the B Impact Assessment, GRI, SASB, or TCFD can help you assess and benchmark your ESG performance.
Develop ESG Policies & Initiatives
Once you understand your current standing, develop initiatives that align ESG with business success.
Environmental initiatives might include carbon reduction goals, sustainable supply chains, and waste management policies. Social initiatives could focus on employee well-being, diversity and inclusion, and ethical labor practices. Governance efforts should ensure transparency in decision-making, ethical leadership, and anti-corruption policies.
A well-integrated ESG strategy ensures that sustainability isn’t just a compliance checkbox—it becomes part of your company’s DNA.
Set Clear ESG Metrics & KPIs
How do you measure ESG progress? Defining key performance indicators (KPIs) is essential for tracking impact.
Consider measuring carbon footprint reduction by tracking emissions and setting net-zero targets. Assess diversity and inclusion by evaluating employee demographics and leadership representation. Monitor stakeholder engagement through employee satisfaction surveys, customer trust scores, and community impact reports.
Regular measurement and reporting keep your strategy accountable and adaptable.
Communicate & Report ESG Progress
ESG transparency builds trust with stakeholders. To share your progress effectively, create an annual ESG report that publishes updates on goals, progress, and impact.
Engage stakeholders by hosting forums, surveys, and discussions to gather insights and feedback. Pursue certifications and ratings, such as B Corp, CDP, or other third-party verifications, to demonstrate your commitment to ESG.
Authentic ESG storytelling helps connect with investors, customers, and employees.
Commit to Continuous Improvement
ESG is not a one-time initiative—it’s a journey.
Companies that adapt to new regulations, invest in innovation, and integrate ESG into their core business outperform competitors in resilience and long-term growth. Regularly review your ESG performance, refine your strategy, and explore new ways to create positive impact.
💡 Pro Tip: Continuous improvement is key. ESG is a dynamic space, and businesses that stay ahead of trends will be best positioned for future success.
Final Thoughts
A well-executed ESG strategy doesn’t just mitigate risk—it creates value, builds trust, and strengthens your company’s future.
Whether you’re just starting or refining your ESG efforts, focus on alignment, measurement, and impact. The more integrated ESG is within your business, the greater its benefits will be.
📢 Where does your business stand on ESG? Let’s talk about how to make it a strategic advantage.
📩 Contact us at hello@knownimpact.com.au or Book a Consultation.
