Stok was brought on by the client to identify the most significant ESG topics to stakeholders and develop ESG strategy priorities based on the most material ESG topics to the client. Specifically, Stok:
Stok was brought on by the client to identify the most significant ESG topics to stakeholders and develop ESG strategy priorities based on the most material ESG topics to the client. Specifically, Stok:
Stok started by reviewing the client’s corporate mission, purpose, values, organizational structure, and decision-making processes to inform communications and strategies, then dove into evaluating and aggregating established ESG-related initiatives to date across various departments. Looking externally, Stok conducted a competitor analysis of ten similar companies inclusive of topics such as reporting frameworks, material areas of focus, and ESG goals and metrics. This provided the client with insight into their opportunity to align with peers, create a competitive advantage, and attract clients by expanding and systematizing ESG activities.
From this exercise, Stok reported out on the client’s strengths in line with competitors, such as addressing diversity, equity, and inclusion (DEI) within the organization, opportunities to be aligned with competitors, such as forming an ESG Committee and aligning to Sustainable Development Goals (SDGs), and opportunities to lead in ESG compared to competitors, such as baselining and setting reductions in energy use and carbon emissions and developing a plan to close the minority pay gap.
To develop the materiality matrix, Stok conducted interviews with key stakeholders and collected additional input via an electronic survey with questions based on relevant reporting frameworks including GRI, SASB, TCFD, UN SDGs, CDP, and SBTi. The two main categories of the assessment addressed (1) the importance of the client’s ESG program to the success of certain areas, including brand reputation, growing revenue, employee retention, client retention, and risk mitigation, and (2) the level of materiality each ESG topic had for both the business and stakeholders. Stok and the client co-developed a scoring methodology for the two categories, resulting in a materiality matrix.
Stok presented key takeaways from the company evaluation, competitive landscape, and materiality assessment to the client, focusing on top ESG issues for the client to consider through the lens of what their clients are focused on and what their employees feel they should focus on. These included a priority on social (S) and governance (G) topics, including DEI, employee health and well-being, fair pay policies, and a focus on the client’s culture as the company continues to grow.
Informed by the materiality assessment, Stok developed an enterprise-wide ESG Strategic Roadmap to integrate into the client’s business strategy and vision. The roadmap addresses immediate needs, builds upon and aligns with long-term business strategies, and provides recommendations to guide future program implementation, as well as identifies responsible parties to support successful implementation.
