Developing an ESG-led best practice approach to attract investment for a dairy exporter
By developing a business plan demonstrating strong ESG credentials and strategic positioning, we were able to help attract new investment for an expanding dairy export business.
The Brief
Our dairy industry customer focuses almost exclusively on export business in emerging markets. It was looking for additional international investors to help finance new processing capacity for a partnership with a key customer. In order to facilitate this, it required a robust business plan to demonstrate its strategic positioning and its commitment to high operating standards.
In addition to the usual elements in such an exercise, it was key to address the company’s environmental credentials. Sustainability is a much over-used term in marketing communications and is often understood very differently in different parts of the world. However, it is clear that Environmental and Social Governance (ESG) issues are becoming more and more central to international businesses.
For instance, recent IFCN research shows that all the world’s top 20 dairy processors have publicly announced sustainability or climate monitoring. Half of them are also targeting carbon neutrality by 2050, with the other half believed to be working on similar lines. However, these are no longer subjects which only the majors set out to address – they are essential components in the planning of SMEs nowadays.
Our Approach
We sought to “future proof” the business by providing practical steps to ensure ESG aspects were explicitly addressed in the business plan.
Our approach recognised that measuring performance in ESG is complex – for example across direct and indirect emissions. Long-term goals are easy to declare as attractive soundbites, but tough to deliver. How to achieve this in an internationally agreed, best practice approach is challenging and demands diverse skillsets. This is why it remains work in progress for many large companies. Our business plan approach had ESG considerations at its heart, with clear action plans to ensure these objectives are met.
Result
This work allowed the customer to appreciate a clear and structured way forward on its ESG good practice.
The benefits of doing so are multiple:
- Ensuring compliance with investors’ expectations/requirements and helping to ensure continued access to capital
- Avoiding reputational issues from poor environmental compliance which may impact future investment
- Enhancing reputational profile
- Achieving competitive differential advantage
- Improving efficiency of environmental inputs and outputs and reducing resource demand and cost
At these benefits’ core are the reduction of business risk and increasing opportunities in the market.
If you’d like assistance in addressing such topics in your business, either in the context of a full business plan or for specific initiatives, please get in touch and we can arrange a discussion session to determine the best way forward.
