Inspired by Sustainability and Driven by Tech
Defining an ESG Framework for the New World
Introduction
Despite the importance of ESG, the lack of standardization in ESG data has become a hindrance to investment decisions. Investors have reported that the proliferation of inconsistent research methodologies and superficial comparisons makes ESG visibility translucent. In addition, the divergence in reporting makes differentiation for sustainability leaders challenging. This has led to a subtle disconnect between how ESG adherence is perceived and how businesses across sectors strive to attain their ESG goals. To overcome these challenges, companies need a better operational and reporting framework.
STL embarked on a quest to find solutions to complex performance measurement and process improvement challenges in its core innovation areas. During the exercise, experts on sustainability realized they needed to build a reliable ESG framework based on digital constructs to drive processes and measure the results continuously. The conceptualization of such an ESG framework is therefore multi-layered, with core solutions, enablers, and compliance components.
STL’s approach to sustainability has been ambitious and exploratory. As a company, STL’s founding principles are deeply rooted in pluralistic thought and technological leadership. STL Digital has a head start in being sustainable, as it is endowed with visionary leadership that prioritizes sustainability as central to its value proposition. Consequently, STL is a leader in the use of digital enablers for sustainable outcomes, and all of its reporting practices are aligned with global standards.
STL has a comprehensive ESG framework that has equipped it to innovate and deliver measurable outcomes across multiple thrust areas for sustainability. For example, STL is aiming for complete sustainable sourcing, carbon neutrality, water positivity, and Zero Waste to Landfill certification for all its manufacturing locations worldwide. STL has also pledged to transform five million lives by the end of this decade through a holistic strategy that accommodates investor, institutional, and community interests.
ESG reporting is a multidimensional responsibility that has diverse stakeholders, including investors, regulators, supply chain partners, consumers, and communities. The Compliance layer of the ESG framework must be able to contextualize sustainability communication for each target persona while adhering to globally accepted reporting standards. Overall, ESG adherence is pivotal for businesses to withstand disruptions and meet stakeholder expectations. A comprehensive ESG framework must allow a company to constantly assess, benchmark, and tune its operations to touch more ambitious ESG thresholds while preserving stakeholder trust.
