Three tips for integrating ESG into corporate strategy

Sponsored: A sustainability professional’s guide to incorporating ESG issues into corporate strategy

By Justin Stevens

August 28, 2023

Moving beyond traditional silos and integrating ESG considerations into corporate strategy will enable businesses to be proactive. Image courtesy of Shutterstock.

This article is sponsored by ScottMadden, Inc.

Corporate responsibility is not just a buzzword; it is a guiding principle that shapes the foundation of a company's identity. Corporations have a profound responsibility to positively affect their employees, society and the environment. Embracing corporate responsibility means recognizing that a business's success is intertwined with the well-being of its stakeholders and the communities it serves.

Companies are facing growing expectations to take positions on ESG issues. Image courtesy of Shutterstock.

In addition to increased pressure from investors, companies are facing growing expectations to take positions on ESG issues that are important to customers. As organizations tackle these ESG issues, they may find themselves at different stages of the maturity curve from initial steps, such as creating dedicated sustainability positions or a sustainability department, to the leading practice of integrating ESG goals into corporate strategy. Sustainability professionals looking to integrate ESG issues into corporate strategy should consider the following initial steps:

1. Integrate ESG strategy into your corporate strategy and business planning processes

Companies must first identify ESG material issues and develop ESG initiatives to address gaps in the business strategy:

Engage the right stakeholders at various levels of the company. Image courtesy of Shutterstock.

2. Ensure organizational alignment all the way up to the board

To elevate ESG topics to the highest levels of the organization, sustainability professionals must engage the right stakeholders at various levels of the company:

3. Leverage existing reporting requirements to communicate ESG issues

Moving beyond traditional silos and integrating ESG considerations into corporate strategy will enable companies to be proactive in managing issues material to their business. Integrating ESG strategy into corporate strategy requires strong collaboration and support from various groups within a company, but it will prove invaluable as companies navigate the changing business landscape.

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