{"id":4214,"date":"2024-06-12T11:49:54","date_gmt":"2024-06-12T15:49:54","guid":{"rendered":"https:\/\/blog.greenprojectmanagement.org\/?p=4214"},"modified":"2024-06-12T12:06:24","modified_gmt":"2024-06-12T16:06:24","slug":"flimsy-esg-strategies-fail-dialogue-building-sustainability-practices","status":"publish","type":"post","link":"https:\/\/blog.greenprojectmanagement.org\/index.php\/2024\/06\/12\/flimsy-esg-strategies-fail-dialogue-building-sustainability-practices\/","title":{"rendered":"When Flimsy ESG Strategies Fail: A Dialogue on Building Sustainability Practices"},"content":{"rendered":"

This is a different sort of post. I want to extend my gratitude to my new friend, M.Z., for allowing me to share our conversation. M.Z. reached out to me on WhatsApp this week, seeking guidance. Since I don\u2019t offer free consulting, I asked if it would be okay to anonymize him and share our discussion, as his challenges might resonate with others. He agreed, and here\u2019s our exchange.<\/strong><\/p>\n

M.Z.:<\/strong> “Joel, I attended your masterclass at the Global Project Management Forum in Riyadh It was incredibly insightful, and now I need your guidance. I’m responsible for the ESG strategy at my company, and we just went through a rigorous audit by Vanguard. They found our ESG disclosure lacking in depth, even calling it ‘flimsy’. Most of our sustainability impacts are in our supply chain, which includes contractors and sub-contractors. I thought these impacts were beyond my control. The auditors pointed out that we couldn\u2019t provide data on sustainability impacts and when you were doing the exercise on P5 standard<\/a> all of those elements seemed to match up with what they were looking for. Their feedback has put our funding at risk. How can we improve our ESG strategy and avoid losing investor confidence?”<\/p>\n

Joel:<\/strong> ” I’m glad you found the masterclass useful. It sounds like you’re facing a significant challenge, but it’s very important to understand that an ESG strategy should be more than just a set of disclosures. It needs to be backed by solid sustainability practices that extend to the entire value chain. This means forming partnerships based on value creation, not just compliance and risk mitigation.”<\/p>\n

M.Z:<\/strong> “That makes sense, but how do we get there? Our projects are heavily dependent on our supply chain, and it’s difficult to manage what happens at every level. We’re under a lot of pressure, and I need a practical way to ensure we meet these standards.”<\/p>\n

Joel:<\/strong> “I understand the urgency. First, recognize that sustainability impacts, even those in the supply chain, are within your sphere of influence. You need to extend your sustainability practices up and down the value chain. This involves setting clear expectations and standards for your contractors and sub-contractors and incorporating sustainability criteria into your procurement processes.”<\/p>\n

M.Z:<\/strong> “So, we need to set stricter standards for our partners? How do we ensure they follow through, especially when we’re already stretched thin?”<\/p>\n

Joel:<\/strong> “It’s not just about setting standards, but also about building relationships and partnerships. Work closely with your supply chain partners to help them understand the importance of these practices. Provide them with the necessary support and resources to implement sustainable practices. Regular audits and assessments can ensure compliance, but the focus should be on creating a culture of sustainability. This is where project management comes into play. Additionally, your Project Management Office (PMO) can be instrumental in supporting resource management and aligning governance with your sustainability goals. The PMO should be fully tuned into what the organization aims to achieve in terms of sustainability, what needs to be disclosed, and how these objectives translate into project requirements.”<\/p>\n

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