Enhance your company’s ESG maturity

In today’s dynamic business landscape, environmental, social and governance (ESG) considerations are increasingly at the forefront of corporate strategy.

ESG maturity refers to the level of advancement of ESG practices within an organisation. It assesses how effectively a company integrates ESG considerations into its operations, strategies and decision-making processes. Understanding the varying levels of ESG maturity among companies is pivotal for stakeholders seeking to navigate the complexities of sustainability and responsible business practices. Evolving ESG maturity can enhance business resilience, attract investors, improve reputation and drive long-term sustainable growth.

Our recently published Digital Procurement Survey shed light on the nuanced landscape of ESG maturity, revealing interesting patterns influenced by factors such as regulatory pressures and company size.

Achieving an ESG maturity balance: respondents noted an intermediate level of maturity across ESG pillars, with governance showing slightly higher maturity. This highlights the need for a balanced approach in addressing diverse ESG concerns effectively.

What can you do now: businesses can achieve an ESG maturity balance by integrating ESG considerations into governance structures, operations and strategies while actively addressing ESG concerns with equal emphasis and commitment.

Navigating social and environmental complexity: achieving maturity in social and environmental issues presents significant challenges due to the wide array of topics to be addressed, demanding comprehensive strategies and resources to navigate effectively.

What can you do now: businesses must develop comprehensive strategies and allocate resources effectively to navigate the complexity of social and environmental issues, aiming to achieve maturity in these areas.

Regulatory impact on governance maturity: national regulations governing corporate governance have driven higher maturity levels in this area, surpassing environmental and social aspects due to stringent compliance requirements.

What can you do now: businesses should prioritise adherence to national regulations governing corporate governance to enhance overall governance maturity levels.

Complexity in addressing social and environmental challenges: achieving a high level of maturity in social and environmental issues poses significant challenges due to the wide array of topics to be addressed. The multifaceted nature of social and environmental considerations demands comprehensive strategies and resources to navigate effectively.

What can you do now: businesses should develop comprehensive strategies and allocate sufficient resources to effectively address the multifaceted nature of social and environmental challenges, aiming for a high level of maturity in these areas.

Company size and ESG maturity: the size of a company emerges as a key determinant of ESG maturity, primarily driven by regulatory pressures. Very large companies, equipped with resources and facing stringent regulatory requirements, exhibit higher levels of maturity. On the other hand, smaller companies grapple with resource constraints and non-binding regulations, which limit their ability to achieve advanced maturity levels.

What can you do: businesses should tailor ESG strategies to their size, allocate resources wisely and proactively engage with stakeholders to overcome regulatory challenges and enhance maturity levels.

The midpoint for medium-sized and large companies: most medium-sized and large companies fall within the intermediate level of maturity, reflecting their efforts to balance ESG considerations amid regulatory requirements and operational complexities.

What can you do: medium-sized companies should focus on aligning ESG efforts with regulatory demands and operational complexities to attain an intermediate level of maturity.