What Should an ESG Strategy Include? A Guide to Measuring What Matters
I hate to say it, but there are always going to be ‘trending’ sustainability topics and impact areas.
I’ve had many community facing, social impact focused, social enterprises come to us and ask for help going net zero.
Of course, a great thing to do!
But we still have to keep the main thing, the main thing. And in this case, that’s Social Impact. (Not that our environment isn’t a social issue, but that’s another blog for another time)
If social facing entities of any kind, haven’t got their social impact implementation and measurement underway first, we are talking strategy pretty quickly.
Amidst the risk of mission-drift, falling trust and institutions trying to hold onto integrity, we live in a world of rising regulations, conscious consumers, and evolving stakeholder expectations.
Not all ESG strategies are created equal. Many businesses get stuck in reporting fatigue, surface-level commitments, or generic frameworks that don’t align with their core purpose.
At Known Impact, we believe the most effective ESG strategies are built on one key idea: measure what matters. And build it from the inside out.
What Should a Good ESG Strategy Include?
Here’s our proven 5-step framework to help you build a strategic, values-aligned ESG roadmap:
1. Understand Your Starting Point
Begin with an internal ESG audit.
This helps you assess your current practices, benchmark against industry norms, and identify gaps or risks.
We always ask:
Where do you have the biggest impact?
What matters most to your stakeholders?
Where are you exposed?
A materiality assessment will give you clarity on which ESG topics—climate risk, worker wellbeing, governance practices—are most relevant to your business and the people you serve.
Quick Tip: Use frameworks like GRI or SASB to guide your initial discovery—no need to reinvent the wheel.
2. Set Clear, Actionable Goals
Not all ESG goals are created equal. Strong goals are:
Specific
Measurable
Achievable
Relevant
Time-bound (SMART)
Align these goals with your core values and strategic priorities. Think about both quick wins (e.g. switching to renewable energy) and long-term shifts (e.g. achieving net zero by 2035).
Example: Reduce carbon emissions by 20% over three years.
This is where many ESG strategies fail. By being too vague, too ambitious, or not business-aligned. Make it real. Make it actionable.
3. Engage Your Stakeholders
ESG is not something you do to your stakeholders—it’s something you do with them.
That includes employees, customers, suppliers, and investors.
Communicate your ESG vision clearly
Invite feedback
Establish advisory groups or focus forums
Show how their voices shape your decisions
Pro Tip: Use stakeholder insights to prioritise what matters and build internal champions early.
4. Integrate ESG Into Your Operations
This is where the strategy becomes real. Embed ESG into procurement, governance, HR, design, and day-to-day delivery.
Cross-functional teams can lead change across departments
Make ESG part of leadership KPIs
Run ESG training so every employee understands the 'why'
Example: Introduce a supplier code of conduct to align your supply chain with your values.
The more embedded your strategy, the more natural and scalable your impact becomes.
5. Measure, Report & Improve
Finally, measure what matters. Not everything—just the right things.
Track your ESG KPIs, share updates, and be honest about challenges.
Use your data to make better decisions—not just to report outcomes.
Carbon tracking is a cornerstone here. And it’s often where businesses struggle.
If you're not measuring your emissions, you're missing a critical piece of your environmental footprint.
Good carbon data can help you:
✅ Identify hotspots
✅ Prioritise reduction actions
✅ Communicate progress with confidence
The Bottom Line: ESG That’s Built to Last
An effective ESG strategy doesn’t start with a rating system or a reporting tool. It starts with clarity:
What do you stand for?
Where do you have the most impact?
How can you act—and improve—over time?
It’s not about being perfect. It’s about being proactive, transparent, and intentional.
Ready to Track What Matters?
We’re offering a Free Strategy Consultation to help businesses like yours:
✅ Identify where you’re at (and where you’re exposed)
✅ Integrate tracking into your broader ESG goals
✅ Design a roadmap that works for your team, your context, and your capacity
Speak soon!