Original content provided by BDO Canada
Environmental, social and governance (ESG) is rapidly becoming a core pillar of long-term growth and sustainability for organisations globally. Sustainability is rapidly moving to the centre of corporate strategy in Qatar as Environmental, Social and Governance (ESG) expectations shift from voluntary guidance to structured disclosure requirements. This transition is strongly anchored in Qatar National Vision 2030, which places environmental development and sustainable economic growth as core pillars of the country’s long-term transformation Qatar National Vision 2030.
• Focusing on ESG has become an excellent defense to retain talent and a great offence to at-tract new talent.
• Organisations are focused on maturing equity, diversity and inclusion practices, enhancing em-ployee health and wellness programs and taking environmental action.
• Today, younger generations are considering an organisation's ESG actions with similar priority to financial compensation.
As a result, senior leaders are investing in ESG programs, initiatives and reporting today.
After factoring in these driving forces, climate change and environmental risks have moved from the bottom of senior leaders’ risk agendas to near the top, as they believe ESG efforts will be critical for long-term growth.
Not only are they committed to prioritising ESG risks and opportunities, but they are holding them-selves accountable by linking their direct compensation to ESG performance. To enable ESG programs, senior leaders are increasing their spending on ESG programs to set strategies, establish targets and commitments and create meaningful impact.
• Defines an innovative vision and purpose of an organisation by identifying non-financial drivers
• Improves access to credit and the ability to attract investment
• Systematically reports the link between strategy and financial performance, including impacts of ESG factors
• Identifies, monitors and manages non-financial risks correctly
• Improves data quality for more effective information management and decision making
BDO has identified a five-stage maturity roadmap that helps illustrate the sustainability integration journey. It aims to help simplify the complexities of sustainability and promote the value that sustain-ability integration can create for a business.
A business at this stage is looking to activate its sustainability agenda by assessing and priori-tising its materiality risks and opportunities through the lens of various stakeholders. The pro-cess involves education, training and a review of the business operations and governance.
• Compliant
A business at this stage has elements of a sustainability program in place, albeit on an ad hoc basis because of being reactive and narrowly focusing on responding to regulatory and stake-holder requirements.
• Proactive
A business at this stage has adopted a systematic, whole-of-business approach to its sustaina-bility program and is looking to boost value creation opportunities internally and externally.
• Strategic
A business at this stage has embedded sustainability across most parts of the company. It is de-veloping products and services, focusing on circularity and technology and ensuring they posi-tively impact the markets where they operate.
• Purpose-driven
A business at this stage has embedded sustainability across all parts of its business. It is using social, economic and environmental criteria beyond what is required by law to positively im-pact those in its value chain.
At BDO in Qatar, we support organisations in turning ESG ambition into practical, measurable action. Our multidisciplinary team works alongside clients to design and implement tailored ESG strategies, strengthen governance and internal controls, enhance sustainability reporting in line with global frameworks such as IFRS Sustainability Standards, GRI and TCFD and prepare for increasing regulatory and investor scrutiny in the region. By combining deep local market insight with the expertise of BDO’s global network, we help businesses embed ESG into core decision-making, improve transparency and resilience and unlock long-term value creation in line with Qatar National Vision 2030.
Environmental, social and governance (ESG) is rapidly becoming a core pillar of long-term growth and sustainability for organisations globally. Sustainability is rapidly moving to the centre of corporate strategy in Qatar as Environmental, Social and Governance (ESG) expectations shift from voluntary guidance to structured disclosure requirements. This transition is strongly anchored in Qatar National Vision 2030, which places environmental development and sustainable economic growth as core pillars of the country’s long-term transformation Qatar National Vision 2030.
Investors increasingly prioritise ESG performance
Now, more than ever, investors believe that companies that prioritise ESG investment and action repre-sent better long-term returns. At the same time, financial institutions and asset managers are evaluat-ing ESG practices, which are directly impacting organisational risk profiles and resulting costs of capi-tal.Talent expectations are changing
• Organisations of all sizes are combating the “war on talent” and the “great resignation” era.• Focusing on ESG has become an excellent defense to retain talent and a great offence to at-tract new talent.
• Organisations are focused on maturing equity, diversity and inclusion practices, enhancing em-ployee health and wellness programs and taking environmental action.
• Today, younger generations are considering an organisation's ESG actions with similar priority to financial compensation.
As a result, senior leaders are investing in ESG programs, initiatives and reporting today.
After factoring in these driving forces, climate change and environmental risks have moved from the bottom of senior leaders’ risk agendas to near the top, as they believe ESG efforts will be critical for long-term growth.
Not only are they committed to prioritising ESG risks and opportunities, but they are holding them-selves accountable by linking their direct compensation to ESG performance. To enable ESG programs, senior leaders are increasing their spending on ESG programs to set strategies, establish targets and commitments and create meaningful impact.
Benefits of enabling sustainability programs
• Builds organisational image and reputation• Defines an innovative vision and purpose of an organisation by identifying non-financial drivers
• Improves access to credit and the ability to attract investment
• Systematically reports the link between strategy and financial performance, including impacts of ESG factors
• Identifies, monitors and manages non-financial risks correctly
• Improves data quality for more effective information management and decision making
How to get started
Part of the challenge for many organisations is understanding where to start. BDO's roadmap is not meant to be linear and the adoption and execution of sustainability will not be the same in any two businesses. In some cases, a company may leapfrog several steps or be forced to join in at the ‘compli-ant' stage. It is important to keep in mind that this is a journey that will continue to grow in value and importance.BDO has identified a five-stage maturity roadmap that helps illustrate the sustainability integration journey. It aims to help simplify the complexities of sustainability and promote the value that sustain-ability integration can create for a business.
BDO's sustainability integration roadmap
• ActivatingA business at this stage is looking to activate its sustainability agenda by assessing and priori-tising its materiality risks and opportunities through the lens of various stakeholders. The pro-cess involves education, training and a review of the business operations and governance.
• Compliant
A business at this stage has elements of a sustainability program in place, albeit on an ad hoc basis because of being reactive and narrowly focusing on responding to regulatory and stake-holder requirements.
• Proactive
A business at this stage has adopted a systematic, whole-of-business approach to its sustaina-bility program and is looking to boost value creation opportunities internally and externally.
• Strategic
A business at this stage has embedded sustainability across most parts of the company. It is de-veloping products and services, focusing on circularity and technology and ensuring they posi-tively impact the markets where they operate.
• Purpose-driven
A business at this stage has embedded sustainability across all parts of its business. It is using social, economic and environmental criteria beyond what is required by law to positively im-pact those in its value chain.
At BDO in Qatar, we support organisations in turning ESG ambition into practical, measurable action. Our multidisciplinary team works alongside clients to design and implement tailored ESG strategies, strengthen governance and internal controls, enhance sustainability reporting in line with global frameworks such as IFRS Sustainability Standards, GRI and TCFD and prepare for increasing regulatory and investor scrutiny in the region. By combining deep local market insight with the expertise of BDO’s global network, we help businesses embed ESG into core decision-making, improve transparency and resilience and unlock long-term value creation in line with Qatar National Vision 2030.