Strong ESG performance is no longer just a ‘nice to have’ for a business to be competitive. Consumers are looking for brands with traceable supply chains and retailers want suppliers who can report ESG metrics to help them with their own targets. It’s becoming a critical part of a business strategy.
In fact, in an IBM 2023 study organisations that are seen as ESG leaders are 43% more likely to outperform similar organisation on profitability.
With the world waking up to the environmental and social impact of businesses and ESG requirements and legislation increasingly growing, the focus on strong ESG performance has never been more crucial. But for businesses without a dedicated sustainability or ESG team, it can be a minefield of confusing jargon, over ambitious targets and an unmanageable amount of data. Here are three key steps in helping businesses in the food supply chain measure and strengthen ESG performance.
1. Decide your metrics
This is perhaps one of the hardest parts of the ESG process, as metrics can differ from industry to industry, and company to company. Understanding the most important metrics to measure and track will not only create a benchmark against the most critical things in your business, but also set you up for success to consistently map and track against the same metrics over time. Metrics can be anything from carbon emissions, local sourcing, labour practices or water waste. Take the time to understand what metrics are important to your business and its customers as a baseline starting point to measuring your current and future ESG performance.
2. Track with tech
The amount of data that can come with your metrics can feel unmanageable, often each with their own units and definitions. Technology plays a vital role in helping you keep on top of tracking performance as well as analysing it for improvement. Using technology to help build and strengthen your ESG performance not only makes it easier for the individual managing the process, it also helps reduce the margin for error, ensuring your data is as reliable as possible – which is essential when you and your customers are makings strategic business decisions based off it. Finding a trusted technology partner for your ESG performance journey is imperative for success, and one that knows your industry inside and out is vital.
3. Integrate into your strategy
The integration of ESG processes and principles into business strategy is an absolute must if you want to be reaching the top of your performance ambitions. Measuring and tracking your ESG performance can help you do this. Whether you’re embedding ESG factors into existing strategies, or you’re creating a new ESG strategy for the business itself. Ensuring ESG is at the heart of organisational strategy with buy in from senior stakeholders is the sure-fire way to ensure you’re hitting your ESG targets and strengthening your ESG performance.
How ESG Lead can help you achieve ESG Performance Improvement
ESG Lead is a one-stop-shop solution that can support you across each of these three steps and more. Drawing upon the shared expertise of Ecodesk and BRCGS, ESG Lead delivers relevant and practical guidance and implementation techniques designed to drive real and immediate improvements in ESG performance. ESG Lead provides the roadmap for businesses to differentiate themselves by mapping against future ESG legislation to put members of the food chain ahead of target deadlines to help unlock future commercial success.
For more information contact: Damien at firstname.lastname@example.org