When you are in the process of designing and formulating your ESG strategy the first step you need to take is conduct a materiality assessment. Which is a formal exercises designed to engage stakeholders and find out how important specific environmental, social and governance (ESG) issues are to them. The outcomes gained can then be used to inform strategy and communication, and help you tell an impactful ESG story.
Part of the designing the materiality assessment is looking at PESTLE and SWOT.
The Political, Economic, Sociological, Technological, Legal and Environmental (PESTLE) helps you understand the ESG trends related to your material issues for example it will help you answer
To start your PESTLE analysis, ask these questions which I read somewhere, and they resonated with me
In short PESTLE will inform your appetite as an organization on how ambitious or how conservative your ESG strategy will be.
Following the PESTLE analysis comes the ESG SWOT analysis. Strengths, Weaknesses, Opportunities and Threats (SWOT) will help you assess how are you positioned to manage the ESG issues and trends across your departments and your sector. You might for instance find that you are already scoring high in working with ethical suppliers, but your communications team weren’t aware of this. You may also find that your peers have all committed to reducing their carbon footprint, but you haven’t yet. Therefore, when you start your SWOT think of where you want your organization to be in the next 5-10 years and why?
To start your SWOT analysis, ask these questions which I read somewhere, and they resonated with me
In short, the SWOT analysis will provide you with a clear picture of what opportunities you can take and how you can be ahead of your competitors
Once the above questions are answered and thought of, you will be in a very good position because the above is your gap analysis which will inform your ESG policy and Strategy.
In case you don't know who we are, we are Communique. the ESG B.Corp Certified Consultancy. We help our clients integrate Environmental, Social, Governance (ESG) within their business model and communicate it effectively.
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