Laying the Foundations: How and Why to Start with ESG in a Business Organization?

In today’s dynamic business environment, companies face increasing pressure to not only survive in the market but also actively contribute to the green and digital transition of the economy and social responsibility. In this context, the concept of Environmental, Social, and Governance (ESG) is moving beyond mere compliance with increasingly stringent legislative frameworks and becoming a key element for a comprehensive approach to business that requires a fundamental change in thinking and action, as well as a key factor for achieving long-term sustainability and competitive advantage.

How to Start?

The first and essential step in the process of introducing ESG into business, aimed at creating a clear picture of existing business processes and data systems, as well as identifying key challenges and opportunities and laying the groundwork for informed decision-making and further development of a sustainable business strategy through the ESG concept, is the analysis of the current state, resulting in the identification of key and relevant ESG criteria for the business.

Identifying key ESG criteria for business can be a complex process that requires careful consideration of specific factors from various perspectives, through several methods and guidelines:

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Iva Vrankić, Manager in the Energy Transition and Sustainable Development Department, Apsolon

photo Zlatko Prkacin

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1. Analysis of Industry Standards

Explore best practices, guidelines, trends, and regulatory requirements related to ESG criteria relevant to the business sector. The goal of the analysis is to gather relevant information for making informed decisions, improving business operations, and achieving competitive advantage.

2. Assessment of Impact on Key Stakeholders

Identify key stakeholders in the business, including investors, clients, employees, suppliers, the local community, and other relevant groups. Assess which ESG criteria are most important for each of these interest groups and how they affect their interests and expectations.

3. Risk and Opportunity Analysis

Evaluate potential environmental, social, and governance risks that may impact the business, as well as opportunities for creating additional value through effective management of ESG criteria.

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Matija Šoštarić, Executive Director of the Public Sector Consulting Department, Apsolon

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4. Consultation with Internal and External Experts

Engage a broader internal circle of stakeholders (investors, management members, heads of finance, human resources, marketing, etc.), as well as external ESG experts and other relevant parties (key suppliers and customers) to gather various perspectives and information on important ESG criteria.

5. Defining Priorities

Based on the previous steps, define priorities for the business and ESG criteria that are most important for achieving business goals, meeting the expectations of key stakeholders, and reducing identified environmental and social risks.

Learn more about the first steps for introducing ESG into business and practical advice for starting with good practices at the workshop as part of the third Lider Conference ESG – Sustainable Future, which will be held on May 23 at the Sheraton in Zagreb. The number of participants is limited, so secure your place by registering in advance.