Leading the change: ESG implementation
Leading the change: ESG implementation
Authors: Charles Tungwarara & Sidharth Nanda
What does it take to lead change in environmental, social and governance (ESG) implementation and performance—not just comply, but transform? That’s the question many organisations across the region are now asking, as ESG shifts from a tick-box exercise to a strategic imperative. In this article, we explore what ESG implementation really involves, why it requires leadership support at the highest levels, and how organisations can shift from intent to impact.
Across the Middle East and globally, the ESG landscape is evolving rapidly. Regulators, investors, customers and employees are raising expectations. What used to be considered "good to have" has become essential. Financial institutions now factor ESG risks into lending, governments integrate sustainability into policy, and employees—especially younger generations—choose employers aligned with their values. The message for business leaders is clear: ESG is not a sideline topic. It is central to long-term business competitiveness.
Effective ESG implementation does not begin with reporting—it begins with leadership. In our conversations with many clients in the region. One of the biggest challenges remains the lack of leadership support—budgets for ESG initiatives are often difficult to approve. Executives and boards must not only endorse ESG strategies but actively champion them. Without leadership buy–in, ESG budgets remain stalled and initiatives lack momentum. When ESG is treated as a boardroom priority, it cascades across departments, shaping decision-making and operations. Leadership should ask bold questions: How does ESG impact our business model? Where are the opportunities to create value—not just reduce compliance risk?
Once ESG becomes a strategic priority, the next step is to integrate it into the culture of the organisation. The famous saying “culture eats strategy for breakfast” rings true. ESG must be woven into the organisation’s culture rather than confined to the ESG function. This means embedding ESG into policies, performance metrics and incentives – for instance, linking executive compensation to ESG targets or equipping procurement teams with tools to assess supplier ESG risks. Real change occurs when ESG becomes part of how employees think, act and collaborate across departments.
The adage goes, “you can’t manage what you don’t measure”. Many organisations struggle at this stage—not from lack of intent, but from lack of quality data. Leading ESG change requires robust systems for data collection systems, clear KPIs and transparent reporting. But beyond the technical challenge lies accountability: stakeholders expect progress backed by evidence, and not just glossy sustainability reports. Delivering this requires transparency and humility—qualities that distinguish leaders from followers.
There is no one-size-fits-all roadmap. ESG priorities vary by industry, size, geography and stakeholder expectations. For example, a logistics company may prioritise emissions reduction, while a financial institution focuses on responsible lending and investing. The key is aligning ESG goals with the organisation’s core purpose and integrating and embedding them into risk management, governance, and reporting. See our previous article on How to integrate ESG into the risk management process
Delaying ESG implementation is no longer viable. Organisations that move early gain a competitive edge in innovating for growth, attracting and retaining top talent, accessing sustainable finance and building customer trust. Most importantly, they build resilience in the face of climate risks, social expectations, and regulatory changes. ESG is not a sprint but a journey, and it starts with leadership buy-in. At BDO, we have recognised this importance and we provide ESG awareness sessions to the Board, executives and staff to ensure a buy-in before implementation.
The future of business is being shaped by ESG, and organisations that lead the change will remain resilient and reap the benefits. ESG is not just about managing compliance risks and reporting — it is about unlocking new opportunities, strengthening resilience, and creating long-term value for all stakeholders. The transformation begins with leadership commitment, cascades through culture, and is anchored in data management and accountability. The organisations that act now will not only meet today’s expectations but also position themselves to thrive in tomorrow’s economy.
BDO supports organisations that would want to embark on their ESG implementation journey, starting with ESG awareness sessions for your senior leadership and the rest of the employees.
Find out about how BDO can help, specifically around activating your sustainability journey.
CONTACT OUR TEAM
Introduction
What does it take to lead change in environmental, social and governance (ESG) implementation and performance—not just comply, but transform? That’s the question many organisations across the region are now asking, as ESG shifts from a tick-box exercise to a strategic imperative. In this article, we explore what ESG implementation really involves, why it requires leadership support at the highest levels, and how organisations can shift from intent to impact.
The ESG imperative is no longer optional.
Across the Middle East and globally, the ESG landscape is evolving rapidly. Regulators, investors, customers and employees are raising expectations. What used to be considered "good to have" has become essential. Financial institutions now factor ESG risks into lending, governments integrate sustainability into policy, and employees—especially younger generations—choose employers aligned with their values. The message for business leaders is clear: ESG is not a sideline topic. It is central to long-term business competitiveness.
Leading ESG change starts at the top
Effective ESG implementation does not begin with reporting—it begins with leadership. In our conversations with many clients in the region. One of the biggest challenges remains the lack of leadership support—budgets for ESG initiatives are often difficult to approve. Executives and boards must not only endorse ESG strategies but actively champion them. Without leadership buy–in, ESG budgets remain stalled and initiatives lack momentum. When ESG is treated as a boardroom priority, it cascades across departments, shaping decision-making and operations. Leadership should ask bold questions: How does ESG impact our business model? Where are the opportunities to create value—not just reduce compliance risk?
From strategy to culture: Embedding ESG in the organisation
Once ESG becomes a strategic priority, the next step is to integrate it into the culture of the organisation. The famous saying “culture eats strategy for breakfast” rings true. ESG must be woven into the organisation’s culture rather than confined to the ESG function. This means embedding ESG into policies, performance metrics and incentives – for instance, linking executive compensation to ESG targets or equipping procurement teams with tools to assess supplier ESG risks. Real change occurs when ESG becomes part of how employees think, act and collaborate across departments.
Data, transparency and accountability matter more than ever
The adage goes, “you can’t manage what you don’t measure”. Many organisations struggle at this stage—not from lack of intent, but from lack of quality data. Leading ESG change requires robust systems for data collection systems, clear KPIs and transparent reporting. But beyond the technical challenge lies accountability: stakeholders expect progress backed by evidence, and not just glossy sustainability reports. Delivering this requires transparency and humility—qualities that distinguish leaders from followers.
Tailored ESG solutions for unique business contexts
There is no one-size-fits-all roadmap. ESG priorities vary by industry, size, geography and stakeholder expectations. For example, a logistics company may prioritise emissions reduction, while a financial institution focuses on responsible lending and investing. The key is aligning ESG goals with the organisation’s core purpose and integrating and embedding them into risk management, governance, and reporting. See our previous article on How to integrate ESG into the risk management process
Why the time to act is now
Delaying ESG implementation is no longer viable. Organisations that move early gain a competitive edge in innovating for growth, attracting and retaining top talent, accessing sustainable finance and building customer trust. Most importantly, they build resilience in the face of climate risks, social expectations, and regulatory changes. ESG is not a sprint but a journey, and it starts with leadership buy-in. At BDO, we have recognised this importance and we provide ESG awareness sessions to the Board, executives and staff to ensure a buy-in before implementation.
Conclusion
The future of business is being shaped by ESG, and organisations that lead the change will remain resilient and reap the benefits. ESG is not just about managing compliance risks and reporting — it is about unlocking new opportunities, strengthening resilience, and creating long-term value for all stakeholders. The transformation begins with leadership commitment, cascades through culture, and is anchored in data management and accountability. The organisations that act now will not only meet today’s expectations but also position themselves to thrive in tomorrow’s economy.BDO supports organisations that would want to embark on their ESG implementation journey, starting with ESG awareness sessions for your senior leadership and the rest of the employees.
Find out about how BDO can help, specifically around activating your sustainability journey.
CONTACT OUR TEAM