We are excited to share an update on our ESG (Environmental, Social, and Governance) initiative.
Back in February, we announced the successful completion of Phase 1 of the project, which involved conducting an ESG Materiality Assessment to explore the environmental, social, and governance issues we should be focusing on as a collaborative sourcing partner for Ontario’s education sector, broader public sector, and other not-for-profit organizations.
We are pleased to announce that Phase 2, which focuses on developing our ESG strategy, is currently underway.
Phase 2: ESG Strategy Development and Implementation Roadmap
The ESG Strategy Development phase is a critical step in helping us integrate material ESG factors into our business strategy, risk management, and governance. With the guidance of ESG Global Services, we have established the following guiding principles that reflect our phased approach to developing and implementing our ESG strategy.
The approach to our ESG strategy will be practical and actionable, reflecting our business structure and operations as a strategic sourcing partner.
‘Crawl, Walk, Run’
Developing and implementing an ESG strategy typically spans multiple years to establish support systems and processes, such as governance and performance monitoring. Therefore, we will employ a phased approach to tackle individual workstreams.
ESG strategy development and implementation will be driven by the priorities of key stakeholder groups, including customers and supplier partners.
We will work closely with our consulting partner, ESG Global Services, to leverage internal resources, expertise, and capacity. This will allow us to limit the overall amount of external support required while providing expert guidance and input throughout the process.
6 Steps in ESG Strategy Development
Our ESG strategy development will involve six steps and we aim to complete this by 2023.
- Establish Strategic Framework
The first step involves determining OECM’s priority ESG factors, aligning them with our value creation and business performance objectives, and establishing a link between business strategy and ESG strategy.
- Conduct Governance Gap Analysis
The second step involves reviewing the current OECM ESG governance structure, identifying the gaps against leading non-profit organization practices, and developing recommendations and guidelines to enhance our structure.
- Integrate ESG into Risk Management
The third step involves evaluating our current enterprise risk management (ERM) systems and processes and creating an action plan to incorporate and oversee ESG risk within our ERM framework.
- Identify Metrics and Targets
The fourth step involves developing short, medium, and long-term ESG metrics and targets.
- Establish Reporting and Disclosure Protocols
The fifth step involves understanding OECM’s current ESG-related disclosures, identifying actions to enhance this to key stakeholders, and developing a roadmap for ESG reporting that aligns with leading reporting frameworks and standards.
- Develop an ESG Strategy Implementation Roadmap
The final step in ESG strategy development involves developing a clear roadmap to integrate ESG into our business practices and processes.
Our commitment to ESG continues to be an integral part of our business strategy. Stay tuned for future updates on our ESG progress.