Steering towards a sustainable
future: ESG as a value driver
Dr. Kanok Karnchanapoo
THE IMPACTS
AGENDA THE ELEMENTS
THE KICK-STARTS
THE IMPACTS
AGENDA THE ELEMENTS
THE KICK-STARTS
COMPLIANCE STRATEGY
START WITH THE DEFINITION
ESG is not
Charity / CSR
Campaign for
saving the earth.
Carbon reduction only.
ESG is a framework for
Long-term return of investment.
Sustainable growth of business.
ESG FACTORS REFLECTS COMPANY’S VALUATION IN THE VIEW OF INVESTORS.
If a business
has core activities that generate pollution.
heavily relies on fossil fuel energy.
does not care about worker’s condition.
troubles the well-being of a local community.
has no proper governance system.
UNDERSTAND DRIVING FORCES,
TRENDS, AND IMPLICATION
MULTINATIONAL Four major stakeholders
CORPORATIONS (MNCs)
driving ESG
GOVERNMENTS /
REGULATORS
INVESTORS
CONSUMERS
MULTINATIONAL Four major stakeholders
CORPORATIONS (MNCs)
driving ESG
GOVERNMENTS /
REGULATORS
INVESTORS
CONSUMERS
Do you have any plan for energy saving?
Do you start carbon recording?
Are the sources of your material sustainable?
How do you make a payment to your workers?
Do you comply anti-bribery and anti-trust practices?
CASE EXAMPLE : GIFT AND PREMIUM SUPPLIERS
CASE EXAMPLE : PROPERTY DEVELOPER
MULTINATIONAL Four major stakeholders
CORPORATIONS (MNCs)
driving ESG
GOVERNMENTS /
REGULATORS
INVESTORS
CONSUMERS
Source: UN
COP3 (1997) – Kyoto, Japan:
Kyoto Protocol: This was the rst major international treaty that imposed legally
binding greenhouse gas (GHG) emissions reduction targets on developed countries.
COP15 (2009) – Copenhagen, Denmark:
Copenhagen Accord: The rst time that both developed and developing nations
agreed on the need to act to limit global temperature rises below 2°C.
COP21 (2015) – Paris, France:
Paris Agreement: The most signi cant COP outcome, set the aim to limit global
warming to well below 2°C, ideally to 1.5°C above pre-industrial levels.
COP 26 (2021) - Glasgow, UK:
Glasgow Climate Pact: focus on action and support to tackle climate change.
Creation of Paris rulebook as the practical implementation of the Paris Agreement.
Including the area of climate nancing, transparency and reporting, and the approach
of Market and non-market mechanisms.
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Source: UN
COP28 (2023) – Dubai, UAE:
The “beginning of the end” of the fossil fuel - Energy transition.
Global Cooling Pledge, to reduce cooling related emissions by 68% from today by
2050, signed by 66 countries. - sustainable cooling / Air-conditioning e ciency.
The loss and damage fund to support climate-vulnerable developing countries
Fill up the resources of the Green Climate Fund : GCF ($3.5 billion).
New announcements for the Least Developed Countries Fund (LDC) and Special
Climate Change Fund (SCCF) over $150 million in total.
World Bank increase $9 billion annually on climate-related projects nancing for
2024 and 2025.
COP28 UAE Climate and Health Declaration to accelerate actions to protect
people’s health from growing climate impacts, supported by over 120 countries.
COP28 UAE Declaration on Agriculture, Food, and Climate to support food
security, signed up by over 130 countries.
Full inclusivity - Voice heard / Fund distribution / Participation / Equity and Just
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NOT ONLY “THE NET ZERO”
NOT ONLY “THE NET ZERO”
PEOPLE
NATURE
CLIMATE
GLOBAL AGREEMENT AND CONCENSUS
GLOBAL-LEVEL POLICY &
REGULATORY FRAMEWORK
NATIONAL-LEVEL POLICY &
REGULATORY FRAMEWORK
REGULATIONS
BUSINESS & ORGANIZATION
GLOBAL AGREEMENT AND CONCENSUS
GLOBAL-LEVEL POLICY &
REGULATORY FRAMEWORK
NATIONAL-LEVEL POLICY &
REGULATORY FRAMEWORK
SPECIFIC / COUNTRY OR
REGIONAL RELATED
REGULATIONS REGULATIONS
BUSINESS & ORGANIZATION
Carbon Border Adjustment Mechanism (CBAM)
A regulation that requires importers to pay a surcharge on their imports initially for highly intensive
carbon products such as cement, iron and steel, aluminium, fertilisers, hydrogen, and electricity,
corresponding to the fee imposed on domestic industry in EU emission trading system.
MULTINATIONAL Four major stakeholders
CORPORATIONS (MNCs)
driving ESG
GOVERNMENTS /
REGULATORS
INVESTORS
CONSUMERS
INVESTORS
FTSE4Good Index
INVESTORS Dow Jones
Sustainability Index
MSCI ESG
(DJSI)
Leaders Index ESG Index Criteria
S&P 500 ESG Index STOXX Global ESG
Leaders Index
CORPORATES
FTSE4Good Index
INVESTORS Dow Jones
Sustainability Index
MSCI ESG
(DJSI)
Leaders Index ESG Index Criteria
S&P 500 ESG Index STOXX Global ESG
Leaders Index
CORPORATES
ESG Practices and Requirement
SUPPLY CHAIN
FTSE4Good Index
INVESTORS Dow Jones
Sustainability Index
MSCI ESG
(DJSI)
Leaders Index ESG Index Criteria
S&P 500 ESG Index STOXX Global ESG
Leaders Index
CORPORATES
ESG Practices and Requirement
SUPPLY CHAIN INTEGRATION
SUPPLY CHAIN
CASE EXAMPLE : WHEN YOUR KEY CUSTOMERS PLAN FOR INITIAL PUBLIC OFFERING
Large Corporation and MNCs now focus on
scope 3 which is scope 1 and scope 2 of
companies in the supply chain.
Requirements can be beyond carbon emission.
MULTINATIONAL Four major stakeholders
CORPORATIONS (MNCs)
driving ESG
GOVERNMENTS /
REGULATORS
INVESTORS
CONSUMERS
IMPORTANT OF THE FACTORS WHEN MAKING A PURCHASE
66%
GEN X
73%
61%
GEN Y
71%
49%
GEN Z
75%
0% 20% 40% 60% 80%
Brandname Sustainability
Source: A survey of US consumer attitudes on sustainable shopping by First Insight and the Baker Retailing Center at the Wharton School of the University of Pennsylvania.
Reference: The World Economic Forum
88%
of American Gen Z do not trust ESG
claims by fashion brands.
Source: McKinsey & Company “State of Fashion 2023 Report”
GREENWASHING
IS NOT THE WAY TO GO.
Recyclable Claim
Neglecting ESG means
STRATEGIC RISKS
BUSINESS RISKS
FINANCIAL RISKS
LEGAL AND COMPLIANCE RISKS
REPUTATION RISKS
HUMAN RESOURCES RISKS
Turn ESG to opportunities
Turn ESG to opportunities
NEW BUSINESS / MARKET POSITION
Turn ESG to opportunities
NEW BUSINESS / MARKET POSITION
BRANDING AND REPUTATION
Turn ESG to opportunities
NEW BUSINESS / MARKET POSITION
BRANDING AND REPUTATION
FINANCING OPPORTUNITIES
Turn ESG to opportunities
NEW BUSINESS / MARKET POSITION
BRANDING AND REPUTATION
FINANCING OPPORTUNITIES
OPERATIONAL EFFICIENCIES
NEW POSITIONING FOR NEW OPPORTUNITIES
Climate Change Climate Change
Mitigation Adaptation
Renewable Energy Sea level rise
Reducing carbon Footprint Flood Defenses
Transportation Water Management
Smart Cities Smart Agriculture (Drought)
Sustainable food productions Cooling systems
Pollution
TRANSFORMING ORGANIZATION WITH ESG IS ABOUT CHANGE MANAGEMENT.
TRANSFORMING ORGANIZATION WITH ESG IS ABOUT CHANGE MANAGEMENT.
MINDSET
SKILLSET
TOOLSET
TRANSFORMING ORGANIZATION WITH ESG IS ABOUT CHANGE MANAGEMENT.
MINDSET
SKILLSET
TOOLSET
SHIFTING MINDSET IN YOUR ORGANIZATIONS
SHIFTING MINDSET IN YOUR ORGANIZATIONS
COSTS
SHIFTING MINDSET IN YOUR ORGANIZATIONS
COSTS VALUE CREATION
SHIFTING MINDSET IN YOUR ORGANIZATIONS
COSTS VALUE CREATION
COMPLIANCE
SHIFTING MINDSET IN YOUR ORGANIZATIONS
COSTS VALUE CREATION
LONG-TERM
COMPLIANCE
BUSINESS MODEL
SHIFTING MINDSET IN YOUR ORGANIZATIONS
COSTS VALUE CREATION
LONG-TERM
COMPLIANCE
BUSINESS MODEL
PUBLIC IMAGES /
ADVERTISMENT
SHIFTING MINDSET IN YOUR ORGANIZATIONS
COSTS VALUE CREATION
LONG-TERM
COMPLIANCE
BUSINESS MODEL
PUBLIC IMAGES / STRATEGIC
ADVERTISMENT MANAGEMENT
THE IMPACTS
AGENDA THE ELEMENTS
THE KICK-STARTS
ENVIRONMENTAL
FACTORS
E factors are more than
Carbon Emission
Sustainable Material
Case Example: Paper from Finland
TRACEABILITY
SOCIAL FACTORS
How a company manages relationships with its stakeholders such as
employees, suppliers, customers, and the communities.
The process of making the goods is as important as the goods itself.
Doing things right and do no harm.
INTERNAL SOCIAL FACTORS EXTERNAL SOCIAL FACTORS
• Health and Safety • Customer Responsibilities
• Working Condition • Social Development
• Human Right / Labor Right • Community Engagement
• People Development • Animal Welfare
S factors are usually enforced
through the whole supply chain
and traceability is crucial.
HUMAN RIGHT, LABOR RIGHT,
TRACEABILITY AND WORKING CONDITION
HUMAN RIGHT AND CHILD LABOR TRACEABILITY
D.E.I.
DIVERSITY
EQUITY
INCLUSION
HOTEL & HOSPITALITY
CREATIVE
BUSINESS
GOVERNANCE FACTORS
Governing system such as rules, practices, and processes
by which a company is directed and managed.
Encompass how a company makes decisions, checks and
balances process, shareholders’ rights, and stakeholder
Compliance and Disclosure Corporate Governance
Cybersecurity & Data Privacy Risk Management
Anti-bribery / Anti-Corruption Tax Transparency
Anti-trust / Competition Law Lobbying
THE IMPACTS
AGENDA THE ELEMENTS
THE KICK-STARTS
How to start
your ESG
Identify important ESG factors
and sub-factors for your industry
and your organizations.
Labor Standard
Human Right & Community
Health & Safety
Customer Responsibility
Working Condition
Employee Relation
Climate Change Anti-Corruption
Bio Diversity Corporate Governance
Pollution Risk Management
Resource Depletion Tax Transparency
Waste Trade Association
Water Security Lobbying
Deforestation Data Privacy
How your organization relate with ESG?
Mandatory Requirement, Passion,
Risk Mitigation, Opportunities
Current Necessity, Future Directions
What are your next moves?
Which elements and which aspects
of ESG impact your organization?
MATERIALITY
MAPPING
Environmental:
• Carbon Emissions
• Water Pollution
• Biodiversity
• Waste Management
Social:
• Community Relations
• Health & Safety
• Energy Access
Governance:
• Regulatory Compliances
• Ethical Business Practices
• Board Composition & Diversity
ENERGY BUSINESS • Risk Management
SEAFOOD BUSINESS Environmental:
• Sustainable Fisheries
• Biodiversity / Marine Resources
• Water Pollution
Social:
• Human Rights & Labor Right
• Health & Safety Standards
• Fair Trade & Ethical Sourcing
• Food Safety & Quality
Governance:
• Regulatory Compliances
• Ethical Business Practices
• Transparent Reporting
• Supply Chain Oversight
Environmental:
• Energy Consumption
• Water Pollution
• Waste Management
Social:
• Digital Inclusion & Accessibility
• Employee Well-being & Mental Health
• Talent Attraction & Retention
• Ethical AI
Governance:
• Data Privacy and Cybersecurity
• Regulatory Compliance
• Intellectual Property Management
• Risk Management IT AND TECHNOLOGY BUSINESS
Environmental:
• Carbon Emission
• Sustainable Materials
• Energy E ciency
• Air and Water Pollution
• Waste Management
• Biodiversity
Social:
• Human Rights & Labor Right
• Health & Safety Standards
• Working Condition
• Community Engagement
Governance:
• Regulatory Compliance
• Anti-bribery
CONSTRUCTION BUSINESS • Risk Management
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Environmental:
• Energy E ciency
Social:
• Financial Inclusion & Accessibility
• Non-discriminatory Practices
• Diversity, Equity, & Inclusion
Governance:
• Regulatory Compliance
• Ethical Business Conduct
• Anti-corruption
• Transparent Disclosures
• Stakeholder Engagement
• Board Diversity
• Risk Management
BANKING AND FINANCIAL SERVICES
• Cybersecurity & Data Privacy
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Environmental:
• Hazardous Waste Management
• Energy E ciency
Social:
• Patient Rights
• Medical Accessibility
• Employee’s Health and Safety
• Diversity, Equity, & Inclusion
• Product Quality and Safety
• Animal Welfare (if involved)
Governance:
• Regulatory Compliance
• Ethical Medical Conduct
• Risk Management
HOSPITAL AND HEALTHCARE
• Cybersecurity & Data Privacy
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Environmental:
• Sustainable Material
• Energy Consumption
• Water Pollution
• Waste Management
• Circular Economy
• Chemical Management
Social:
• Diversity and Inclusion
• Labor Right and Fair Wages
• Community Engagement
• Consumer Safety
• Animal Welfare
Governance:
• Regulatory Compliance
• Intellectual Property
• Risk Management FASHION BUSINESS
Environmental:
• Energy E ciency
• Waste Management
• Carbon Emission (Transportation)
• Resource E ciency
Social:
• Diversity and Inclusion
• Community Engagement
• Accessibility
• Health and Safety
• Labor Standard
Governance:
• Data Security and Privacy
• Stakeholder Engagement
MICE : meetings, incentives, conferences, and exhibitions
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Energy E ciency
VENUE Waste Management System
Transportation System
F&B
Worker and Sta Management Sustainable F&B
Diversity & Inclusion (Accessibility) supply chain
Safety & Emergency Packaging
Transportation Management Waste management
Material Choice (Digital / Renewables)
ORGANIZER Direction & Communication
Eco-Partners & Suppliers
Worker and Contractor Management HOTEL
Community Engagement
Culture / Diversity & Inclusion Eco-Compliance
Data Security Standard
Stakeholder Engagement
Material Choice (Digital / Renewables)
CONTRACTOR Eco-Design
Circularity and Recyclability
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ESG DEVELOPMENT PROCESS
AWARENESS - CONSIDERATION - DECISION
EDUCATION TOOLS : Literacy / Foresight / Strategic Facilitation
ALIGNMENT - COLLABORATION - DEPLOYMENT
INTEGRATION TOOLS : Materiality Mapping / Strategic Formulation
/ Policy and Process Design
ASSESSMENT - CONTROL - DEVELOPMENT
IMPLEMENTATION TOOLS : Strategic Execution / Policy Guidelines /
Technology, Solution, and Services / Check-list /
Procedure / Measurement & Evaluation / Use Cases
Source: Kanok Karnchanapoo
“Today ESG is not a BUZZ,
it can be a PLUS. But
tomorrow it will be a MUST”
- Kanok Karnchanapoo
“THE BEST MOMENT IS NOW.”
Dr. Kanok Karnchanapoo
