An ESG-SDGs alignment and execution model based on the Ocean Strategies transition in emerging markets

Open Access
Article
Conference Proceedings
Authors: Evangelos MarkopoulosMaria Barbara Ramonda

Abstract: Sustainable Development has been introduced in 1987, and it is underpinned by three equally essential pillars: economy, society, and the environment. The adoption of the Sustainable Development Goals in 2015 was a watershed moment in the campaign for sustainable growth. Since then, this set of 17 objectives has steered the private and governmental sectors toward more sustainable, inclusive, and responsible processes. In addition, the ESG Index has recently gained prominence primarily in the financial industry. While ESG Investment Markets in developed nations have proliferated, many emerging market businesses have been marginalized, owing to a lack of human and financial resources for ESG compliance. Considering that the appropriate ESG credentials may result in various advantages, ranging from attracting potential investors to establishing a good reputation and gaining a competitive edge, it is critical for firms in Emerging Markets to employ tactics that will assist them in achieving this.The research conducted involve an extensive literature review on this subject, a survey with 86 valid responses and four interviews with international experts. The results indicate that within different challenges regarding ESG compliance, the unbalanced approach that many businesses adopt is a major one. Societal issues seem to be the aspect that companies primarily focus on, while Environment issues appear to be neglected or forgotten. This is especially true in Emerging Markets because of a lack of data, a lack of interest and a lack of political pressure. Therefore mapping ESG and SDGs requirements can bring significant benefits to organizations that can improve their Corporate Sustainability without harming their economic growth, development and strategy.This research introduces an ESG – SDG mapping model and its execution process to achieve the maximum of this relationship. The prioritization of the SDGs has to be related to the ESG strategy an organization is committed to executing based on its capability and maturity. The proposed model is based on integrating the Blue, Pink and Green oceans and the gradual achievement of SDGs during the transition from one ocean to the other. This Pink Ocean and Green Ocean driven ESG framework is targeted primarily for the Emerging Markets where the need to adapt the SDGs is more significant than other regions. The paper indicates the initial limitations in the strategy and application of the proposed model and areas of further research that can overcome these limitations and wider its areas and regions of adaptation, and improve the scoring parameters and process. Local and international companies can use the proposed model to ignite and boost their Corporate Sustainability by complying with the ESG metrics and align themselves to the Sustainable Development Agenda.

Keywords: Sustainable Development, society, economy, environment, United Nations, ESG, Corporate Sustainability, SDGs, Emerging Markets, innovation, strategy

DOI: 10.54941/ahfe1001511

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