ESG 2.0: Run It Like a Product
Move from reports to results. Wire ESG to cost, revenue, and risk, and WACC with a 90-day cadence.
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- CFO-ready framing: revenue ↑, cost ↓, risk ↓, WACC ↓
- ESG-as-Product cadence: 12-quarter roadmap, 90-day releases
- ESG 1.0 → 2.0 table for board papers
- 90-day sprint starter: KPI tree, roles, governance rails
From theatre to throughput
ESG 1.0 was theatre with reports, policies, and aspirations. ESG 2.0 is throughput, cash, risk, and trust. Treat ESG like a product: give it an owner, a backlog, release cycles and user adoption metrics. Ship the product that moves the KPI.
| ESG 1.0 (Old) | ESG 2.0 (New) |
|---|---|
| CEO purpose narrative | Funded Transition roadmap: CAPEX/OPEX investment aligned with sustainable value. |
| Sustainability in a silo | CFO-owned value engine: Revenue ↑, cost ↓, risk ↓, WACC ↓ |
| Site-by-site initiatives | Throughput KPI trees: Continuous KPI trees with weekly variance control. |
| Supplier surveys & broad asks | Contracted supplier rails: Required data/evidence packs, audit windows. |
| Optional participation | Mandatory compliance: Non-compliance triggers chargebacks or supplier ramp off. |
| “Champions” & heroics | Build trust: Quarterly sprint cadence, aligned with Value–Risk–Trust KPIs |
ESG as a Product: The Operating Cadence
- Owner: CFO (value), COO (delivery), CSO (standards)
- Roadmap: 12 quarters, with 90-day releases
- Backlog: dynamic list of ESG initiatives
- Metrics: adoption, yield, energy intensity, defect rate, win-rate, WACC
- Reviews: Monday plan; Friday “show the cash” demo
Your First 90 Days
Cost Sprint
Reduce operating cost and carbon intensity simultaneously
Revenue Sprint
Monetise sustainability opportunities and end-user preferences
Risk / WACC Sprint
Quantify and mitigate value-at-risk from ESG exposures
No longer an option, it’s the way of moving ESG forward
Who owns ESG 2.0?
CFO (value), COO (delivery), CSO (standards). One drumbeat, shared KPIs.
How soon can we show cash?
Within 90 days via targeted sprints (cost, revenue, risk/WACC).
What about compliance?
Policy is the minimum spec. Strategy begins where policy ends—choice under constraint.
About Dr Paul A. Phillips
Professor of Strategic Management and Chartered Accountant helping boards turn sustainability into boardroom advantage. Speaking, advisory, and execution sprints.