…and how to get back on track

Illustration source: www.Safalnireshak.com

We’ve scaled the peak!

During the last 5 years we have been scaling up the initial curve of the Dunning Kruger Effect graph where the market thinks it knows it all about ESG, and once we have reporting sorted out, funds will flow even more freely into them from institutional investors and the public alike, reporting will be regulated by authorities, and it will all be grand.

Based on PRI insight from 2020, Environment, Social, and Governance (ESG) related investment has skyrocketed during the past 5 years to over $70 trillion. BlackRock CEO Larry Fink is pressuring leaders and boards of portfolio companies to…

Personal observations while on vacation in Sardinia

Cape of San Giovanni, southern Sardinia (personal photograph)

I write this as I chomp down on pieces of a cool, ripe, sweet white melon from Sardinia, picked from a farm just a couple of days ago.

My family and I had a chance to visit friends in Cabras, on the south-western side of the island of Sardinia, Italy. We spent a week in a sun-filled bliss of transparent blue seas, rocky beaches, gentle sea breezes, laughs around the family table, sumptuous meals, and immersed ourselves in an unexpected learning experience along the way.

What is a Blue Zone?

Some three decades ago, scientists observed that a…

The rising popularity of business models as a ‘buffer’ construct

Business Strategy, Business Models, and Business Processes are presented as points along the same continuum of business operations between the conceptualization, planning and execution steps in an enterprise. The impact of a pivot on the strategy can have a potentially tremendous impact on your business model and business processes. Strategy pivots can create ripples or tsunamis in the business models and business processes. How do you anticipate and cope with these?

In Part 1 of this series, I laid the groundwork for understanding this impact by clarifying the definitions and relationships between these concepts, understanding how they interact with each…

What should life beyond 50 be?

Photo by Mathias P.R. Reding on Unsplash

Zipping by 50 last year

I still see my 50th birthday in the distance of my life’s rear-view mirror of May last year. I didn’t have time to celebrate it. Of course, there was nowhere to celebrate as nothing was open anyway because of the pandemic, but I was also going at full speed on a client engagement. Okay, to be honest, there was a little celebration with my loving little family of three (which frankly is all that really matters), but nothing beyond that. I didn’t have time to reflect on ‘being 50 and all’, to take stock, to plot the future, to savor…

Emergent EU framework for ESG has far reaching implications on your data strategy

Primer: ESG is an acronym for Environment, Society, and Corporate Governance. ESG has been an emergent topic for the past 5 years and represents the culmination of concepts and principles underlying ‘triple bottom line’, ‘corporate social responsibility’ and other such ‘sustainability’ related initiatives that bring disparate concepts under one notional umbrella.

This article was jointly written by Deep Parekh, PhD (Epistemy BV), and Jan Meskens (Juvo).

The last decade has witnessed companies and organizations’ business strategies focus beyond profit and on sustainability. There exists an alphabet soup of sustainability initiatives such as Social Entrepreneurship (SE), Corporate Social Responsibility (CSR) or…

Use your business processes to embed ESG principles

Processes, and not programs, are where ESG can be embedded

ESG is an acronym for Environment, Social, and Governance — three umbrella factors that businesses are being evaluated against, besides their earnings, by a range of stakeholders including investors, institutions, authorities, customers, employees, and communities in which businesses operate. There has been a steady rise in Boardroom discussions about ESG, mostly due to finance and regulatory concerns. Increasingly, the finance world has begun looking at ESG factors as mediating and moderating variables to benchmark debt cost, interest rates, instability and risk.

The Boardroom discussions that we find continue to be at high levels, and mostly around the ‘E’ element of…

Watch out! Your Dirty Laundry Will Be In Plain Sight

Demand forecasting has typically been an internal affair, at most seen by and collaborated with your B2B customer. Adopting ESG reporting will change this, stepping up the elusive search for better logic, methods, and analysis for demand forecasting. ESG factors are impacted by your demand forecast in both direct and indirect ways. This article explores the ways in which your demand forecast impacts your ESG rating.

ESG is an acronym for Environment, Social, and Governance, a set of factors that ensure that companies and organizations are employing and embedding sustainability focused practices. Companies today are being held to emerging standards…

ESG Reporting — Proposed Solutions and Roadmap Approach

In Part 2 of this series, we discussed the burning platform and the nexus of 3 critical factors that are making ESG Reporting both important and urgent. In this final Part, we offer some solutions to the ESG Reporting quagmire, and propose a staged roadmap approach that is both pragmatic and effective.

If we take a quick look at the MSCI reporting parameters, we quickly notice that they are split into Performance, Risk exposure, and Controversies. They depart from traditional mainly Performance based metrics, which companies are pretty good at already, and are quite comfortable with the concept.

Source: MSCI (www.msci.com)

The introduction…

ESG Reporting is the roadblock — how to deal with it

In Part 1 of this series, we explained the fundamentals of understanding ESG factors and their urgency and importance for companies. In this part, we dive into the critical factors and highlight the most immediate roadblock — ESG Reporting.

We are at a critical intersection today

We are at the nexus of 3 important factors: 1) Consumers are demanding greater visibility into the provenance of materials that are being used to deliver the products that they buy, wanting them to be sustainable and companies that embody the purpose that they share and are aligned with; 2) Authorities and regulators are rolling out new frameworks for deeper and…

A holistic approach taken one step at a time

In the past 5 years, we have witnessed the rise of the term ‘ESG’, an acronym for Environment, Social, and Governance. Its rise has been evident mostly in financial services circles, but has spilled over to the general marketplace and has reached the masses through mainstream media articles in Medium, Forbes, and even the Motley Fool. ESG refers to a holistic set of factors by which enterprises need to manage their operations by means of broad principles that make them a steward of the Environment, a net-benefactor to Society, and are managed transparently and with adequate internal controls through Corporate…

Deep Parekh, PhD

I’m a Belgium-based serial entrepreneur working at the intersection of Business, Technology, Society, and Policy, with a PhD in Business Model Dynamics.

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