Important considerations for establishing ESG-compliant digital vision

Emerging technologies have opened up a world of new possibilities for how we interact with our stakeholders. Most of the interactions have now shifted into the digital realm which now forces us to work in new and different ways Many businesses are moving to adopt strong ESG practices, not only out of altruism but because it’s good business.

This forces us to adjust procedures and systems that may have formerly been efficient in addition to requiring everyone to adopt a new way of thinking and working. It’s not as scary as it sounds.

It all begins by defining the role of sustainability within the digital vision of the organization at the very start.

So what a digital vision:

It is part of developing strategic clarity, a digitally-led success roadmap, and then balancing this with execution excellence: It is

- It is the organization's daily guide for driving digital change, incorporating the desired ESG principles.

- Is a plan that is understood by all, aligned with the company and personal objectives of all involved, supported, and bound by the same culture and values. So ultimately, everyone pulls in the same direction.

- It is a plan that clearly lays out the project where the organization is going and how it is going to get there.

These capabilities will lead to both: Competitive advantage and protection from disruption. And Higher profit through revenue growth and cost reductions

The digital vision will have to deliver on 3 important Fronts

1) Customer

a) Providing a digitally integrated, ethical client experience

b) Improving customer service by implementing ESG practices

c) Changing your customer life for the better with technology

d) Using ethical digital strategies to gain a deeper understanding of customers

Following ESG principles is also a way of building trusting and long-lasting relations with modern customers, especially Millennials, who now represent the most solvent customer group. According to a PWC report, 76% of them are likely to abandon the brand if the company treats its employees and environment poorly. GreenPrint’s Business of Sustainability Index report states that 75% of Millennials prefer paying a higher price for eco-sustainable products, even if there are cheaper but less eco-conscious alternatives.

2) Operations

Businesses that find their current operations inefficient often focus their digital efforts on reinventing them. A transparent supply chain is in the best interest of every organizational stakeholder. Operational excellence can be used by using advanced analytics and artificial intelligence for predictive maintenance, raw material optimization, overall supply chain management, and experience. Understating the ESG performance in the operations of the company can come from

Streamline data collecting procedures:

Since sustainability data originates from a variety of sources, the first step is to compile it in one location for future reporting and analysis.

Embed sustainability metrics

In general, ESG-compliant companies incorporate sustainability metrics into their daily operations. These indicators often include carbon footprint reduction, increased energy efficiency, employee and product safety, and established business ethics.

This improves organizational awareness and management of how many resources are used and how it affects the environment. For investors, the “environment” criteria take on even more significance against the backdrop of climate change. Because of this, it is crucial to keep better track of resources used and assess your influence on the environment. and how it affects the environment.

3) Modeling New Business Strategies

Only a small number of businesses have made an effort to comprehensively assess the sustainability potential, limits, and vulnerabilities of their current business models and ecosystems. Much emphasis is put on shareholder returns and hence there has been a greater reliance on financial strategies, M&A, and constant process and organizational efficiency enhancement. There are 4 ways of doing this

Identify limitations and weaknesses in the current and operating organizational business model

Where and what are the limitations of the system? What kind of vulnerabilities do they create for the business model? How do stakeholder dynamics and environmental and societal issues constrain your business model from scaling

Look at the organization’s new and expanded ecosystem and key players

Who are the major participants in the system? What are the actual problems and trends affecting the environment and society? How do stakeholders, societal challenges, and the environment directly or indirectly affect each component of the current business model?

Create scenarios and extrapolate trends

Look at how the environmental and societal trends of today might change over time. Create scenarios that involve a more drastic and changed future. Then, given these circumstances, consider how societal and environmental challenges might evolve How could perceptions and attitudes of stakeholders around those concerns change? What would happen to the business model and the system map?

Identify future innovations opportunities

These are the areas that could alter stakeholder dynamics, have a positive effect on societal or environmental challenges, lessen the business model's vulnerabilities, or even open up new commercial value prospects.

Consider Scaling Opportunities:

Look at the company model at various activity levels 3, 5, or 10 years ahead. How quickly can a company scale up its technology, infrastructure, and processes to sustain growth? Where might opportunities or breaking points occur?

There’s no single formula for creating a great vision, and every organization’s digital vision is going to be different. There are, however, characteristics that great digital visions have in common. A great digital vision that incorporates ESG principles tells a story. People will need to picture the “new reality” and that is what inspires action