MASTERING ESG. THE KEY TO COMPETITIVE EDGE

PROTAGONIST

TRANSCRIPTION

HOST: Thanks for being here today. Well, to start, I would like to ask you how do strong ESG strategies contribute to the long-term stability and resilience of companies? 

CHRISTINA: The first thing to understand is that strong ESG strategies are far more than just feel-good initiatives—they're about managing risk, ensuring sustainability, and driving real value. Companies that prioritise ESG aren’t doing it just for show—they're actively preparing for the future. ESG is crucial for long-term stability and resilience because it fosters adaptability and it’s not about ticking boxes or meeting short-term  s; it’s about aligning the entire business with sustainable, purpose-driven practices that create value for all stakeholders. 

"Strong ESG strategies are more than feel-good initiatives - they’re about managing risk, creating real value, and preparing businesses for the future." - Christina Banahan, Global ESG Director at SPS 

Companies that embrace ESG build trust and a strong reputation, which becomes invaluable during crises or economic downturns. That trust doesn’t just improve brand loyalty—it also helps attract top talent and customers who want to engage with businesses that reflect their values. Environmentally, companies focusing on sustainable practices—whether through energy efficiency, waste reduction, or resource management—protect themselves against regulatory risks and rising costs particularly as resources become more scarce.  

Each aspect of ESG feeds into the other. Ignoring any one of these pillars leaves a company vulnerable. For instance, companies with poor governance often struggle to implement meaningful environmental or social policies, leading to short-term thinking that can ultimately harm them. Good governance on the other hand, ensures transparency and accountability, and is the backbone of corporate resilience, helping companies weather any crisis 

HOST: And how does ESG impact stakeholders, particularly in terms of risk management? 

CHRISTINA: From an investment standpoint, companies with strong ESG strategies attract long-term investors who prioritize sustainable growth over short-term profits. These investors are likely to stay during uncertain times, providing the stability needed to navigate challenges. 

And when you’re talking about risk management. Companies with robust ESG frameworks are better equipped to anticipate and address risks like climate change or regulatory shifts. By addressing these challenges proactively, rather than reacting after the fact, companies can avoid disruptions and ensure continuity. This forward-thinking approach builds adaptability into the business, allowing them to pivot and respond to changes in the market or environment more effectively. 

But ESG shouldn’t just be viewed through the lens of risk. It also drives innovation. When companies align with societal and environmental needs, they foster creativity, developing new products or services that benefit both the business and society. It’s about being future-ready, not just reactive. 

Internally, ESG enhances employee engagement. Employees want to work for companies that stand for more than just profit. When they see their company committed to positive change, it boosts loyalty and productivity, creating internal stability that becomes invaluable when external challenges arise.

In essence, companies that fully integrate ESG into their core operations are building both stability and adaptability. They’re better equipped to pivot when needed, respond to new challenges, and innovate in ways that keep them competitive. ESG is not just a trend—it’s the key to staying relevant, resilient, and successful in an evolving world that’s increasingly demanding more from corporations 

HOST: How can companies balance transparency with the risk of being criticized for not doing enough?  and How can companies effectively communicate their genuine ESG efforts? 

CHRISTINA: Balancing transparency with the risk of criticism is indeed one of the most difficult challenges for companies today. On the one hand, transparency is crucial for building trust; on the other, there’s always the fear of being criticised for not moving fast enough or doing enough. The key to managing this is finding the right balance—being open about progress while acknowledging that the journey toward sustainability is ongoing. 

"Transparency and authenticity in ESG aren’t just expectations - they’re essential for building trust, attracting talent, and ensuring sustained success." -  Christina Banahan, Global ESG Director at SPS 

It’s about being authentic. Companies should communicate their ESG efforts in a way that highlights both their achievements and the areas where they're still evolving. People don’t expect perfection, but they do expect honesty. Instead of trying to present themselves as flawless, businesses should focus on sharing their journey—the successes they’ve had, the challenges they’ve encountered, and their plans for the future. 

HOST:  But how can they convey that message? 

CHRISTINA: Effective communication goes beyond just providing data. Companies need to tell a story that connects sustainability to their broader mission. Combining emotional appeal with specific metrics, such as emissions reductions or other tangible results, allows them to demonstrate authenticity while showing real progress. Consumers, for example, are more likely to trust a company that says, "We've made progress, but there’s still more work to be done," than one that claims to have solved everything without offering evidence. 

Admitting gaps in ESG efforts and recognising areas for improvement actually builds more trust. Both consumers and investors understand that no company is perfect. When businesses openly discuss areas that still need work, they signal a commitment to long-term progress rather than short-term gains. 

Of course, ESG is complex, and no company can address every issue at once. That’s why it’s crucial to provide regular updates and back up claims with measurable results. Transparency is about being honest about what’s been achieved and what still needs work. People respect companies that are candid about their challenges and willing to admit where they need improvement. 

For companies just beginning their sustainability journey, the fear of being accused of greenwashing is real. But the key is to communicate openly about the process. Instead of pretending to have achieved all their goals, companies should be clear about where they stand. If they’re aiming for net-zero emissions by 2050, they should share what progress has been made so far and what steps still need to be taken. It’s about being transparent not just about the destination, but about the process. 

Ultimately, it all comes down to authenticity. When companies present their ESG efforts as part of a genuine, ongoing journey—supported by real data and third-party validation—they build trust, even if they aren’t perfect. Consumers, investors, and employees are drawn to organisations that are open, transparent, and committed to continuous improvement. This approach builds long-term value and resilience, allowing companies to foster support and credibility as they work toward their bigger goals. 

HOST: What is "green blushing," and how does it differ from greenwashing? 

CHRISTINA: Greenwashing occurs when companies exaggerate or fabricate their sustainability efforts to appear more environmentally responsible than they really are. It’s a deceptive tactic, capitalising on the growing demand for eco-friendly products without actually putting in the hard work to back up those claims. For example, a company may claim to have "green" products based on minor improvements, like recycled packaging, while ignoring the fact that the rest of its business operations remain highly polluting. A well-known example of greenwashing in the automobile industry occurred when a major car manufacturer marketed their vehicles as eco-friendly due to certain "clean" technologies, while behind the scenes, their actual emissions were far higher than advertised. This created a misleading perception of sustainability, focusing on appearance rather than genuine environmental impact. Such practices not only mislead consumers but also erode trust, making people sceptical of sustainability claims. These scepticisms can harm entire industries, making it harder for companies that are truly committed to sustainability to gain the trust they deserve. 

HOST: And what about this new concept, green blushing? 

CHRISTINA: In contrast, green blushing is the opposite of greenwashing. Instead of exaggerating their efforts, companies downplay or understate their genuine sustainability initiatives. As sustainability became a critical business factor, many businesses struggle with balancing the need for transparency with the fear of being criticised for not doing enough, leading them to hesitate in promoting their achievements. An example of green blushing which I covered in college was Unilever. Through their Sustainable Living Plan, they’ve made impressive strides in reducing their environmental footprint and improving social conditions in their supply chain. Yet, they’ve sometimes been cautious about promoting certain accomplishments, perhaps waiting until they’ve achieved more global alignment or further progress before making bold claims. —understating real progress to avoid premature scrutiny or criticism. 

Both greenwashing and green blushing can harm a company’s credibility, but in different ways. Greenwashing is easier to detect because it’s often flashy and comes under scrutiny. Green blushing, however, is more subtle and can go unnoticed, but companies that engage in it miss out on the chance to build stronger relationships with consumers and investors who value genuine sustainability efforts.

HOST: Either way, how can companies ensure that their ESG claims are authentic and verifiable? 

CHRISTINA: That’s a crucial question, especially in today’s landscape where consumers, investors, and regulators are all paying close attention to ESG. To ensure that their ESG claims are authentic and verifiable, companies need to focus on several key strategies. One of the first steps is setting clear, measurable goals., It’s not enough to simply say, “We’re committed to sustainability.” Companies need specific targets, like reducing carbon emissions by a certain percentage or improving labour conditions, and they must publicly track progress toward these goals, even on setbacks, which builds credibility. 

External validation also plays a huge role in ensuring ESG claims are not just marketing speak. For example, if a company claims to be carbon-neutral, a third-party audit can verify if they've taken the steps to offset emissions or if their methods are questionable. This kind of external verification reassures investors and other stakeholders that a company’s ESG initiatives are grounded in reality. 

Additionally, ESG must be integrated into the company’s core operations. This requires strong governance and a cross-functional effort, involving teams from operations, finance, HR, legal, and marketing. Everyone needs to collaborate to ensure that the company’s sustainability efforts are real, measurable, and consistent. Strong leadership involvement ensures accountability, turning ESG from a marketing tool into a fundamental business strategy. 

Moreover, making data publicly available and easily accessible is important for transparency. Companies should publish annual sustainability reports, track their progress against industry benchmarks, and make that information easy for stakeholders to find. This openness removes any ambiguity about whether a company is delivering on its ESG promises. Third-party audits or certifications further verify the accuracy of that data, making it harder for companies to inflate their achievements. 

HOST: Christina, can you tell us a little bit about how SPS helps clients become more sustainable? 

CHRISTINA: At SPS, our focus extends beyond our own sustainability goals—we're committed to helping our clients achieve theirs, through tailored, innovative solutions. By harnessing digital transformation and operational efficiency, we enable clients to reduce their environmental impact while enhancing overall performance. As I discussed in a previous podcast, digitising information not only reduces the demand for physical paper but also cuts storage needs and supports more flexible hybrid working models, which in turn expands the talent pool. It also strengthens data protection and provides a reliable audit trail, ensuring compliance with high standards. These solutions address all three pillars of ESG requirements in a holistic and seamless manner.  

For example, we've partnered with some of the world’s largest banks and insurance companies to introduce global digital mail platforms, digitising millions of documents and enabling remote employees to operate more effectively. In addition to digitisation, we leverage advanced technologies, including AI, to automate much of the data capture that would have previously required manual input from staff. This automation significantly accelerates the process, allowing businesses to move further along in applications or claims processing. As a result, employees can focus on more valuable tasks, freeing up time and effort that would have been spent on routine data entry. The outcome is a streamlined operation that enhances both efficiency and the overall customer experience. While the financial services industry has advanced in these areas, the healthcare sector has untapped potential for digital efficiency. When healthcare data flows digitally, costs drop, and both efficiency and quality rise.  

"At SPS, we don’t just set our own sustainability goals - we partner with clients to create tailored, innovative solutions that reduce environmental impact and enhance overall performance." - Christina Banahan, Global ESG Director at SPS 

The NHS, for instance, faces significant pressure to manage planned care, particularly in outpatient clinics where appointment volumes have doubled over the last decade. Booking Administration Services are a major cost burden, with 68% of administrative time wasted. To address this, SPS partnered with the NHS through our Managed Booking Administration Service, automating bookings, and reducing errors. Additionally, SPS supports the NHS by digitising patient records, providing 24/7 access to critical data for multidisciplinary teams, enhancing patient safety, and minimising errors. This digital efficiency also streamlines clinical coding processes, traditionally fragmented and labour-intensive function, allowing healthcare professionals to focus on core patient care duties while reducing overhead costs. These solutions have improved patient experience, maximised clinical efficiency, and freed up resources for reinvestment in frontline services—such as hiring additional nurses and doctors.  

HOST: Perfect, and How can companies streamline processes to ensure timely and accurate ESG reporting? 

CHRISTINA: Streamlining processes for timely and accurate ESG reporting hinges on automation, digitisation, and centralisation. Here’s how these strategies work together: 

First, digitisation simplifies the process by automating how data is collected. This not only speeds up the process but also improves accuracy, reducing human error and ensuring consistent data collection for reporting purposes. 

Standardisation is also key, whether the data being ingested is structured or unstructured. Establishing clear business rules and frameworks for collecting and reporting data helps ensure consistency. This approach makes reporting smoother and is particularly useful when complying with regulations like the EU’s Corporate Sustainability Reporting Directive (CSRD).  

Additionally, centralising data allows companies to store all relevant information in one place, making it easier to track, access, and report. Automation reduces manual work, while centralisation ensures everything is easily accessible, which helps companies maintain timely and accurate reporting. 

By applying these strategies, businesses can effectively streamline ESG reporting, improving operational efficiency and governance. 

HOST: In your recent collaboration on the podcast Sustainability Voices with Patrick Obeid—a podcast we highly recommend to our subscribers—you mentioned the relevance of IT security awareness in digital transformation. How important is IT security awareness in protecting ESG data, and what steps should companies take to keep this information secure? 

CHRISTINA: IT security awareness is crucial for protecting not only ESG data but all types of sensitive information, including operational, governance, customer, employee, and financial data. These datasets often contain highly sensitive details, and any breach can lead to severe financial, legal, and reputational damage. As companies increasingly rely on AI, data analytics, and digital platforms to track and report on ESG initiatives, the volume of sensitive data they handle continues to grow. This includes emissions data, supply chain information, employee welfare details, and financial records tied to sustainability efforts. If not properly secured, the consequences can be devastating, leading to cyberattacks, data breaches, and a loss of stakeholder trust. 

The impact of data breaches extends beyond immediate financial or legal penalties. They can result in long-term damage to consumer confidence, and loss of investor support. Take the Equifax breach of 2017 as an example—hackers accessed the personal information of 147 million people due to a failure to patch a known vulnerability. The fallout, including $700 million in legal settlements and lasting reputational damage. In the context of ESG, where transparency is critical, any failure to protect data can seriously undermine stakeholder trust in a company's governance. 

A robust approach to IT security involves regularly conducting security audits to identify vulnerabilities and ensure that protective measures are up to date. Securing real-time ESG data is just as important as collecting it, and regular audits signal that a company takes data protection seriously, which serves to strengthen its reputation. 

Beyond basic security measures like encryption and multi-factor authentication, companies should leverage advanced technologies such as AI to detect irregularities and prevent breaches before they escalate. However, even the best technology won’t suffice without a strong culture of IT security awareness. Regular training in how to handle sensitive data ensures that everyone understands the risks and can act responsibly to prevent threats. 

Additionally, companies must ensure that third-party partners handling ESG data or any data for that matter adhere to the same level of security vigilance. The security of a company’s data is only as strong as the weakest link in its ecosystem, making it crucial to carefully vet partners and prevent multiplying the risk of breaches. 

In summary, protecting ESG data—and all sensitive data—requires a comprehensive strategy that integrates advanced technology, human awareness, and continuous monitoring. By fostering a culture of vigilance, ensuring partners uphold the same security standards, and implementing robust cybersecurity tools, companies can safeguard their data while reinforcing their commitment to transparency, governance, and responsibility. 

HOST: What are the key metrics that companies should focus on to measure the success of their ESG strategies? 

CHRISTINA: When it comes to the environmental side, companies usually track a few key areas. First is their carbon footprint—essentially, how much greenhouse gas they’re emitting. Then there’s energy efficiency, like the percentage of energy they’re getting from renewable sources. Water usage is another big one, focusing on how well they manage and reduce consumption, along with waste management, which looks at how much waste they can reduce or recycle. 

For some industries, air quality, biodiversity, and land use are also important factors to consider. Sustainable sourcing and resource efficiency are crucial too—where are your raw materials coming from? Are they certified, organic, or Fairtrade? And how are you managing those resources to minimize depletion? Finally, companies are also thinking about the circular economy—how their products are used, reused, and eventually disposed of. Are there take-back or recycling programs in place to close the loop? 

When it comes to social metrics, the focus is really on people and community impact. One of the key areas is employee well-being, which includes tracking things like job satisfaction, access to training, turnover rates, and, of course, the health and safety of employees. 

Diversity and inclusion are big, too. Companies are looking at the representation of women and minority groups, especially in leadership roles, to make sure they’re building a more inclusive workplace. 

Community engagement plays a vital role as well, covering initiatives like volunteer programs, charitable donations, and broader social contributions.  It's equally important for companies to monitor labor practices within their supply chains, ensuring fair wages, ethical treatment, and safe working conditions, particularly in global operations. Executives can't afford to claim ignorance when it comes to poor working conditions in their supply chains—responsibility and accountability are crucial.  

Additionally, depending on the industry, factors such as customer satisfaction and data privacy may also be considered as part of the broader social responsibility landscape 

Governance is all about transparency and accountability. It covers things like board diversity and independence—making sure there are diverse perspectives at the top. Executive compensation is another critical area, where leadership pay is increasingly linked to achieving ESG targets. Ethical business practices are equally essential, with a strong focus on adhering to anti-corruption laws and upholding and maintaining high ethical standards in business. 

HOST: Let’s focus now in another very trending topic, which is How AI is affecting ESG? 

CHRISTINA: Technology is revolutionizing how companies collect, track, and report ESG data across industries. For example, in manufacturing and transportation, AI can track emissions in real time, pulling data from multiple sources like energy usage and fuel consumption. 

In healthcare, digitizing patient records not only reduces paper waste but also allows AI to analyse care patterns and optimize resource use, aligning with both social and governance metrics. Similarly, in financial services, digitizing documents reduces waste and streamlines governance through more efficient reporting processes. This kind of technological standardization ensures that ESG metrics are consistent, accurate, and verifiable. 

AI is a game-changer for ESG reporting. It automates the collection and analysis of data, such as emissions, supply chain metrics, and employee statistics, transforming months-long processes into tasks that can be completed in a fraction of the time. 

By using AI, companies can shift from being reactive to proactive. They can quickly identify areas where they excel and where improvements are needed, allowing for quicker adjustments to meet sustainability goals. 

Ultimately, the key to measuring ESG success lies in having the right data, and technology enables companies to gather, analyse, and report this data efficiently. This helps businesses become more transparent, proactive, and efficient in their ESG efforts, turning sustainability into a core driver of growth and long-term success. 

At a recent 2024 Banking Summit, the CEOs of some of the world’s largest banks highlighted two key challenges: the potential for 50-60% efficiency gains in document management and processing, and the growing strain on resources due to demographic shifts. Although I previously mentioned that banking and insurance are more mature markets compared to healthcare, there's still considerable room for improvement. The solution to both challenges lies in data automation. By automating processes and leveraging data more effectively, banks can unlock significant operational efficiencies while alleviating some of the resource constraints. 

HOST: Do you have any forecast about the role ESG will play in the future? 

CHRISTINA: ESG is here to stay, and for good reason. At the same conference Lutz Diederichs, CEO of BNP Paribas, made it clear that "ESG is demanded by all stakeholders, and banks cannot afford not to have a strategy on this." The message is simple: ESG is no longer optional. It’s now a fundamental part of any business strategy, driving everything from stakeholder engagement to long-term resilience. As you highlighted in your introduction, making a positive impact is no longer optional for businesses; today's world demands a new and authentic perspective. As we've discussed, sustainability and operational efficiency aren’t mutually exclusive; they complement each other. Moving forward, companies that embed ESG authentically into their core strategies will not only survive but thrive in this evolving landscape.