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&BLOOM's Hierarchy of ESG Needs 

Building on our years of experience with investors and businesses, we have learned that there are three categories of ESG needs that dictate organizational actions. These encompass:

  • Foundational Needs (Fact): Setting the groundwork for ESG by ensuring compliance with regulations and industry standards. This includes implementing governance structures, conducting risk assessments, and establishing policies to address environmental, social, and governance issues.

  • Reporting and Progress Tracking (Extract): Assessing and reporting on ESG performance to demonstrate progress towards goals and ambitions. This involves measuring key performance indicators, disclosing relevant information to stakeholders, and integrating ESG considerations into financial reporting.

  • Strategic Focus on Impact Areas (Impact): Strategically leveraging ESG opportunities to drive positive impact in key areas. This includes identifying impact areas, engaging with stakeholders to prioritize actions, and aligning sustainability initiatives with business objectives.

The ESG needs summarize the necessary balance of attention to the larger goals and objectives (the strategic or 'impact' part), and the specific activities required to achieve those goals and objectives (the tactical/operational or 'fact' and 'extract' parts). These needs are typically driven by various stakeholders, including, but not limited to employees, investors, and regulators. By following this framework, investors and businesses can systematically address ESG issues and integrate sustainability into their business strategy, leading to long-term value creation for both shareholders and society.

Our services at &BLOOM are tailored to complement the hierarchy of ESG needs. Whether your organization is focused on establishing foundational practices, enhancing reporting capabilities, or maximizing impact, you can count on &BLOOM for support every step of the way.

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© 2024 &BLOOM Sustainability & ESG

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