Sustainability and ESG (ENVIRONMENTAL SOCIAL GOVERNANCE)

Foundation Workshop Series, April 2023

Workshop 1: Wednesday 19 April 12 -1 pm

Integrating Sustainability, ESG concepts and values into your Organisation
– using current Sustainability and ESG approaches

Dr Kate Averill / 2023 ISD © 2023

Welcome

Tēnā koutou katoa,

He mihi mahana tēnei ki a koutou
katoa
Mauri ora ki a tātou katoa

Greetings
Warm greetings to you all
Good health to us all
Sustainability and ESG
(ENVIRONMENTAL SOCIAL GOVERNANCE)
Series Outcomes
1. Learn about and reflect how
Foundation Workshop Series sustainability and ESG concepts
and practice are evolving.
2. Gain confidence in using and
• Workbook applying sustainability concepts
• Four webinars and Q&A to an organisation or community.

• Online resources 3. Acknowledge your current

approach to sustainability and
• Templates initiate some transformative
thinking & actions using an
• Facebook – sharing community integrated Sustainability and ESG
Impact Model.

ISD © 2023
What is Sustainability?
Sustainability is a term first presented in 1987 in the Brundtland Report, (Our Common Future)
“Humanity has the ability to make development sustainable to ensure that it
meets the needs of the present without compromising the ability of future generations to
meet their own needs” [United Nations, (1987), p.11].

Time for transformation

▪ IPCC report (2021) – currently – globally and locally not sustainable
Intergenerational ▪ Globally on track for major climate change and further
inequalities
▪ Have degradation of our planet – biodiversity, land, water, air
▪ Need regeneration globally and locally
▪ Address inequalities and support
▪ Values, worldviews, ethics, stakeholder views, social licence, wants
and needs, regulatory environment – global, sector and national
▪ Growth of ESG ratings and use in sustainability reporting
▪ Account for environmental and social impacts from and within
businesses
▪ Circular economy, degrowth, post growth

ISD © 2023
ISD © 2023
Rapidly moving context
- terms, guidance, ethics & standards
Glossary & acronyms
Reporting standards
■ IPCC - Intergovernmental Panel on Climate
Change – recent report ■ ESG ratings – growth in use
■ International Accounting standards -
■ Sustainable Development Goals (SDGs), UN changing to include sustainability &
Global Compact (sustainable companies) climate change disclosures (ISSB, IFRS,
TFCD, SEC)
■ 2030 - 2050 (1.5 - 3 degrees global warming)
■ Audit non-financial information – ESG by
■ Climate Commission & country commitments Banks
Aotearoa NZ – to half carbon emissions by 2030 ■ Mandatory requirement – sustainability,
ESG & climate change disclosure
Ethics & worldviews standards
■ Shifting context & need ■ Data to evidence (quantitative &
qualitative) - chain of evidence
■ Stakeholder values & worldviews
■ GRI – Global Reporting Initiative
■ Sustainable, regenerative & transformative ■ Audit and integrated reporting
■ Greenwashing, credible can verify & auditable ■ Convergence but organisations need to
be proactive
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Key sustainability concepts
– building knowledge, capability and action
Stakeholder values &
collaboration
ESG Maturity Map
Sustainable, regenerative,
circular economy, Integrating
degrowth
Evidence-based assessment, sustainability
reporting and adaptive
responses concepts and ESG
Environment, Social & (Environmental,
Data, narrative & evidence Organisational Governance dimensions Social and
(Quantitative & Qualitative) Purpose Governance)
Integrated planning,
dimensions can
Carbon footprint,
neutral, zero,
measuring & reporting transform planning,
inequalities operations, and
Materiality (Double - internal
reporting
Behavior Change & external impact ), value
creation & risk

Transformative theories of
change & actions

ISD © 2023
Aligning values, worldviews (indigenous, te ao Māori) and goals
with Sustainable Development Goals (SDGs) - Economic, Social, Environmental (UN, 2015)
and Western perspectives - convergence

ORGANISATIONAL
PURPOSE

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Aligning values, goals and strategy

Tiaki Promise
Tiaki means to care and protect. The Tiaki
Promise is a commitment to care for New
Zealand, for now and for future
generations.

ISD © 2023
Using theories of
change and action

▪ to set goals and results

▪ inputs, activities, outputs,
outcomes and impacts

‘Line of sight’

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Proactively Planning, Measuring and Reporting
Sustainability and ESG Progress and Impacts
– Three Phases provide a ‘chain of evidence’

Phase 1

Reflect & Plan

Phase 3 Phase 2
Analyse, report & adapt Action & Measure

ISD (c) 2023

Knowing where you are now - for sustainability and ESG
progress and impacts. Your baselines and intentions …?

Proactive planning,
Where are you now? measuring & reporting
■ Integrated & transformational
■ Think global act local ■ Values, regenerative & contribution
■ ESG – Environment, Social, Governance
■ Climate Change – carbon, water, energy,
soil
■ Resilience – biodiversity, risk
■ Inclusive – stakeholder values & equity
■ Impact, sustainable, regenerative,
feedback and adaptation, degrowth
■ Impacts - customer experience &
contribution

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 [Organisation name] Sustainability & ESG Impact Model [Logo]
Sector & organisation
Relevant dates & version
Outcomes & impacts

Longer Longer Sector Regional

Sector Regional Sector Regional term
Longer term term Outcome Outcome
Outcome Outcome Outcome Outcome Outcome
Outcome Outcome

Indicator Indicator Indicator Indicator

Outcome Outcome Outcome Outcome Outcome Outcome

Outcome Outcome Outcome

Indicator Indicator
Key activities
& outputs

Outputs Outputs Outputs Outputs Outputs Outputs Outputs Outputs Outputs

Outputs Outputs Outputs

Indicator

[List key Environmental sustainability activities] [List key Social sustainability activities] [List Governance sustainability activities]
and Governance inputs
Environmental, Social

Soil & People Opportunities

Carbon Energy Water Waste Inclusion Culture Wellbeing Learning Health & Structure Financials Risks
Biodiversity culture & Innovation
footprint safety

Environmental Social Governance

Context, worldviews, values, and needs

Time

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Impact model and measurement framework
– scope, reflect - what to include and align to?
Iterative …
▪ Organisational values – brand story
Sustainability
Development Te Tiriti O Waitangi ▪ Values –Treaty – Principles
Goals (SDGs)
▪ SDGs - select relevant goals
▪ ESG dimensions - consider
NZ Living
ANZ National Standards -
including:
Adaptation Plan Treasury 4 Capitals ▪ identify key ‘big rocks’ for your
organisation
▪ key climate disclosures
International Wine Climate Disclosures ▪ sector indicators
Standards - XRB
▪ proactive and compliance

SWINZ – 6 focus Export market ▪ Start with key ‘big rocks’ and
requirements in
areas and Farm
different evolve!
Plan categories
jurisdictions ▪ To be credible – relevant, workable
and measurable
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 Sustainability assessment checklist

Dimension/area Key info/indicator /targets Progress/ comments

Organisation

Sustainability Assessment
Location(s)

Values & world views

Key stakeholders

Where are you now? Sector

Industry

Value-add

Products and services

Key resources

Number of staff (gender/ethnicity/age)

Other
Values &
Baseline Environment

Impacts indigenous Carbon footprint Scope 1, 2, 3 Emissions

assessment
worldviews Water

Soil & Biodiversity

Energy

Other

Choices, risks Social

Behaviour change – Theories of change Equity

(current, chronic) &
see, think, act & action Health & safety

opportunities Wellbeing

Learning

Inclusion

Governance

Sustainable, Structure

regenerative People culture

transformative, Financial:

Turnover
innovative Profit/service

Other

Risks:

Current

Chronic

Opportunities:

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Planning and measuring for impact, risk and resilience
- Know your Carbon Emissions - Scope 1, 2 and 3 – gather data

Companies that persist in

treating climate change solely as
a corporate social responsibility
issue, rather than a business
problem, will risk the greatest
consequences.

Michael E. Porter and Forest L.

Reinhardt

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 Item Amount Comments
Scope 1:

Some relevant Scope 2:

ESG data – is
better than no Scope 3:
data or lots of
data unrelated
to what you are
actioning

(c) ISD 2023

Where are you now? – Knowledge and capability
Planning, Measuring and Reporting
Thinking globally acting locally Sustainability and ESG Progress and
Impacts Credibly
• Proactive, integrated & transformational
• Values, sustainable, regenerative &
contribution
• ESG – Environment, Social, Governance
• Stakeholder collaboration and feedback
• Climate Change – carbon, water, energy,
soil
• Resilience – biodiversity, risk
• Inclusive – stakeholder values & equity
• Impact, feedback and adaptation &
contribution
• Proactive 6 monthly and annual reporting –
can be verified
(c) ISD 2023
Proactively Planning, Measuring and Reporting
Sustainability and ESG Progress and Impacts

– Three Phases provide a ‘chain of evidence’

Phase 1

Reflect & Plan

Phase 3 Phase 2
Analyse, report & adapt Action & Measure

ISD (c) 2023

 Follow up activities:
1. Download the Foundation Series Workbook – will send
out again in email today and it is in the Facebook Group
files. Note key terms and acronyms from today and
each workshop so you can remember and use them.
Save all workshop files in a folder on your computer.

2. Download Sustainability Assessment template from

email and start completing. This helps to get down what
you are doing, thinking about and know about already
Follow up Also what you need to find out. This will take a few
sessions as there is some reflecting involved.
activities & 3. Tomorrow we will be discussing what you learned,
questions applying and focus on some of the details in the
Sustainability and Materiality Assessment. I will send out
the Sustainability and Impact Model Template
tomorrow so you can start on it over the weekend and
next week and evolve for next Wednesday’s session.

4. Acknowledge your expanding Sustainability and ESG

skills, knowledge and capability after session. This helps
with increasing your confidence and understanding.

5. Questions: Please email me at kate@isd.nz or post in

Facebook Group – will respond – learning community.

Closing: Nō reira e te whānau, tēna koutou tēna koutou tēna tātou katoa