Assess and design your ESG strategy

Develop an ESG strategy

We help organizations understand and baseline their current performance, set environmental, social and governance (ESG) goals, evaluate both the financial and ESG impact of potential initiatives, and develop roadmaps for improved ESG financial value.

What is my ESG strategy?

For more than two decades, companies have come under increasing pressure to incorporate ESG goals in their business. An increasing body of evidence indicates that companies can both do good and do well financially, which is contributing to a record number of companies setting out on their own “ESG journeys”.

Higher value
+3% TSR for top quartile environmental performers globally

Higher value

+3%

TSR for top quartile environmental performers globally

Savings on cash and carbon
~50% of emission reduction at net zero cost in key sectors

Savings on cash and carbon

~50%

of emission reduction at net zero cost in key sectors

Lower regulatory risks
+2-12% EBIT margin for companies abating 55% of emissions¹

Lower regulatory risks

+2-12%

EBIT margin for companies abating 55% of emissions¹

Cheaper financing
-100 bp WACC for top quartile environmental performers in Europe

Cheaper financing

-100 bp

WACC for top quartile environmental performers in Europe

Easier hiring and retention
40% of talent are attracted to sustainable companies

Easier hiring and retention

40%

of talent are attracted to sustainable companies

Growing revenue pools
+4-25% CAGR on sales for “green” product lines

Growing revenue pools

+4-25%

CAGR on sales for “green” product lines

Notes, sources, and definitions

_{Note: (1) Based on a €75/tCO² price assumption for 2030}

_{Source: EU announcements; NYU Stern Center for Sustainable Business}

_{TSR = total shareholder return}

_{EBIT = earnings before interest and taxes}

_{WACC = weighted average cost of capital}

_{bp = basis point}

_{CAGR = compound annual growth rate}

The first step in an ESG journey is to level set and develop your strategy. Begin by identifying your material ESG issues, measuring your current ESG (including climate/GHG) performance, and assessing your long-term exposure to climate risk. Then, set ESG goals, assess the financial impact of achieving those goals, and develop a roadmap for improving ESG performance and embedding ESG into your operating model.