Implementing Environmental, Social and Governance (ESG) Principles for Sustainable Businesses: A Practical Guide in Sustainability Management (Responsible Leadership and Sustainable Management)

✍ Scribed by Tracy Dathe, Marc Helmold, René Dathe, Isabel Dathe

• Publisher: Springer
• Year: 2024
• Tongue: English
• Leaves: 249
• Edition: 2024
• Category: Library

✦ Synopsis

The concept of environmental, social and governance (ESG) is rapidly emerging as the new global industry standard and an important benchmarking tool for socially responsible investments. Major corporations seek the expertise of specialized consultants to develop and implement tailored ESG framework for their businesses.

This book offers a guide to ESG and its practical applications. Beyond introducing the structured procedures of the most common ESG approaches, it delves into the comprehensive impact on the value chain, providing practical insights. The text explores the latest trends in various business sectors, offering insights into their ESG practices. Closing with a forward-looking perspective, the book anticipates future developments such as climate change management and ESG certifications, while also addressing potential pitfalls encapsulated by the term “greenwashing”.

Written by authors with a solid background in teaching and research, the book establishes a robust theoretical foundation. The inclusion of numerous practical examples and country-specific recommendations enhances this book’s applicability and makes it an invaluable resource to those navigating the complexities of ESG.

✦ Table of Contents

Preface
Contents
List of Figures
List of Tables
List of Acronyms and Abbreviations
About the Authors
1: Introduction: ESG and Corporate Accountability
References
2: Emergence of ESG Principles
2.1 The First Initiative
2.2 ESG: “Who Cares Wins” Concept and Freshfield Report
2.3 Main ESG Stakeholder Groups
2.4 Conferences of the Parties (COPs)
References
3: ESG-Related Theoretical Frameworks
3.1 Concept of Sustainability: The Three-Pillar Model
3.2 Corporate Social Responsibility (CSR)
3.2.1 Fundamental Concept
3.2.2 Carroll’s CSR Pyramid
3.2.3 Two-Dimensional Model of Quazi and O’Brien
3.2.4 Three-Domain Model by Carroll and Schwartz
3.2.5 Corporate Citizenship (CC)
3.3 Sustainable Development Goals (SDGs)
References
4: Public Policies
4.1 The Role of Government
4.2 Economic Public Policies
4.3 Political Power of Private Business
4.4 Non-governmental Organization (NGO)
4.5 Social Enterprise
4.6 Case Study: WFTO (World Fair Trade Organization)
References
5: Corporate Strategy
5.1 Corporate Strategy and Strategy Pyramid
5.2 Strategic Management and Strategy Triangle
5.3 Strategy Analysis
5.3.1 Internal and External Factors
5.3.2 PESTEL Analysis
5.3.3 Porter’s Five Forces
5.3.4 SWOT Analysis
5.3.5 Core Competencies Analysis
References
6: Strategy Selection
6.1 Mintzberg’s Strategy Definition (5Ps Model)
6.2 Selection Criteria
6.3 Strategic Management Tools
6.3.1 Porter’s Generic Strategies
6.3.2 Ansoff Matrix
6.3.3 BCG Matrix
6.3.4 McKinsey 7-S Model
6.3.5 Blue Ocean Versus Red Ocean Strategy
6.4 Case Study: Marvels Strategy Transformation
References
7: Strategy Implementation
7.1 Process of Strategy Implementation
7.2 Strategic Architecture
7.3 Balanced Scorecard (BSC)
7.3.1 Fundamental Concept of Balanced Scorecard (BSC)
7.3.2 Vision, Strategy and Performance Management
7.4 Change Management
7.4.1 Change Management Strategy
7.4.2 Lewin’s Change Management Model
7.4.3 Kotter’s Eight-Step Change Model
7.5 Case Study: Volkswagen Group’s Vision Statement and Sustainability Strategy
References
8: Approach to ESG Policy
8.1 Challenges in Business Practice
8.2 McKinsey ESG Approach
8.2.1 The Start Point: ESG Purpose and Level of Ambition
8.2.1.1 Minimum ESG Policy
8.2.1.2 Common ESG Policy
8.2.1.3 Next-Level ESG Policy
8.2.2 ESG Process Cycle
8.2.2.1 Mapping Business Model with ESG Dimensions
8.2.2.2 Defining ESG Targets and Monitoring Tools
8.2.2.3 Embedding ESG in Business Strategy
8.2.2.4 Engaging ESG Stakeholders to Maintain Social License
8.3 Case Study: Lufthansa’s ESG Strategy
References
9: ESG Stakeholders
9.1 The Concept of Stakeholder
9.1.1 Classic Stakeholder Theory
9.1.2 Freeman’s Stakeholder Model
9.1.3 Stakeholder Theory vs. Shareholder Value Approach
9.1.4 Internal vs. External Stakeholders
9.2 Stakeholder Relationships and ESG Strategy
9.2.1 Stakeholder Relationship Management (SRM)
9.2.2 Identifying Stakeholders
9.2.3 Prioritizing Stakeholders
9.2.4 Visualizing Stakeholder Community
9.2.5 Engaging Stakeholder: The Communication Plan
9.2.5.1 Stakeholder Engagement Profile
9.2.5.2 Communication Strategy
9.2.6 Monitoring Stakeholder Relationships
9.2.6.1 Maintaining Stakeholder Community
9.2.6.2 Reviewing Stakeholder Engagement Profile
9.3 Case Study: LVMH Louis Vuitton Moët Hennessy SE
9.3.1 Art and Culture
9.3.2 Life 360
9.3.3 2025 CSR Roadmap
References
10: ESG in Risk Management
10.1 Fundamentals of Risk Management
10.2 PWC Four-Step Framework for ESG Risk Management
10.3 ISO 31000:2018 and ESG Risk Management
10.4 Case Study: Nestlé S.A.
References
11: ESG Reporting Rules
11.1 Corporate Governance
11.2 Globalization and ESG Reporting
11.3 Regulators of ESG Reporting
11.4 ESG Reporting Requirements in Europe
11.4.1 Applicable Rules and Regulations
11.4.2 EU Taxonomy for Sustainable Activities
11.4.3 Corporate Sustainability Reporting Directive (CSRD)
11.4.4 ESG Reporting Standards
11.4.4.1 International Sustainability Standards Board (ISSB) Standards
11.4.4.2 Global Reporting Initiative (GRI)
11.4.4.3 European Sustainability Reporting Standards (ESRS)
References
12: ESG Metrics
12.1 Types of ESG Metrics
12.2 ESG Ratings
12.3 ISO Standards and Certifications
12.3.1 ESG-Relevant ISO Standards and Certifications
12.3.2 Global Influence of ISO Standards and Certifications
12.3.3 Certification Process on Example of ISO 9001: 2015
12.4 Case Study: The DWS Case
References
13: Consumer Relationship and Sustainable Talent Management
13.1 Stakeholders in Public Attentions
13.2 Consumer Relationship
13.2.1 Power of Consumer and Sustainable Consumption
13.2.2 Consumer Protection
13.3 Sustainable Talent Management
13.3.1 David Ulrich Model and the Role of Talent Management
13.3.2 Talent Management Processes
13.3.3 Prioritizing Employee Experience
13.3.3.1 Diversity, Equity and Inclusion (DEI)
13.3.3.2 New Work: Working Conditions in the Era of Digitalization
13.3.3.3 Fair Wage
13.3.3.4 Dismissal Protection
13.3.3.5 Employee Privacy
13.4 Case Study: Apply Inc.
References
14: Sustainability Marketing
14.1 Marketing Strategy
14.1.1 Purpose of Marketing Strategy
14.1.2 Marketing Mix for Physical Products: 4Ps Model
14.1.3 Marketing Mix for Service Industry: 7Ps Model
14.2 Marketing Strategy as Driver for ESG Implementation
14.2.1 Transformational Marketing Concept with ESG
14.2.2 Creating Shared Value (CSV)
14.2.3 Cause-Related Marketing (CRM)
14.2.4 Transformative Marketing Concept
14.3 Case Study: Tesla and Disruption of the Automotive Industry
14.4 Case Study: The Walt Disney Company’s ESG Concept
References
15: Sustainable Supply Chain
15.1 The German Supply Chain Act
15.2 Supply Chain Network
15.2.1 Procurement and Supply Chain Management
15.2.2 Objectives of Supply Chain Management
15.2.2.1 Seven Rights (7Rs) of Logistics
15.2.2.2 Triple Constraint Model: Cost-Time-Quality
15.3 Special Decisions in Supplier Management
15.4 ESG Issues in Supplier Management
15.4.1 The Role of ESG in Supplier Management
15.4.2 Human Rights
15.4.3 Environmental Protection
15.4.4 Fair Trade and Ethical Trading
15.4.5 Fair Competition
15.5 Case study: Aroundtown’s ESG Concept for Housing Market
References
16: Outlook to ESG Future Trends
16.1 Climate Litigation
16.2 Green Financing
16.3 Carbon Pricing
16.4 Consolidation of ESG Reporting Standards
16.5 The Challenge of Disruptive Innovations
References
Index