Country-specific sustainability strategy and first Sustainability Report.
A publicly listed natural gas exploration and production company with operations in Africa faced significant challenges in developing an effective sustainability strategy that was aligned with the host country's sustainability ambitions and would enable them to maintain their license to operate. Previously, the company had undertaken a materiality assessment and gathered internal ESG data but lacked a comprehensive approach to leverage these insights effectively. With peers in the market launching sustainability strategies, the company wanted to create a bespoke and country-specific strategy.
The company recognized that managing sustainability internally would demand extensive resources and expertise. They were concerned that off-the-shelf solutions were both costly and inadequate for their specific needs. They were also grappling with the complexity of aligning with multiple reporting frameworks, which was overwhelming and hindered their ability to communicate their sustainability efforts coherently.
Launching the client's first Sustainability Report
NPA began by evaluating the client's existing ESG-related materials, past activities, and strategic ambitions. We provided a guidance document incorporating global megatrends, investor expectations, industry best practices, and regulatory developments pertinent to the client's operations. Additionally, we performed a macroanalysis to align the client's business model with the country's environmental, social, and economic agendas, as well as the UN Sustainable Development Goals.
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Step 1: Stakeholder Overview
We mapped out key stakeholders and their expectations, conducting a competitor benchmark to position the client's ESG ambitions against 13 peers. This analysis led to a classification system highlighting how competitors integrated ESG into their business models, giving the client insight into industry ESG maturity.
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Step 2: Materiality Assessment Review
NPA reviewed the client's materiality assessment and developed a materiality matrix to identify core sustainability topics. We classified these topics based on their impact on stakeholders and the client's business, categorizing them as 'must-do' or 'can-do'.
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Step 3: Data Collection
NPA developed a data management spreadsheet to streamline the creation of the inaugural sustainability report and establish a best-practice data collection template for future use. The process reviewed previous data collection methods, identified data sources, and addressed gaps to support the strategy and reporting needs.
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Result: Strategy and Sustainability Report Creation
NPA developed a tailored, long-term sustainability strategy based on assessments, benchmarks, and workshops, ensuring it could evolve with the company. We co-created the inaugural sustainability report, highlighting the client's values, actions, ambitions, and progress. Following publication, NPA continued to support the client in refining and implementing their sustainability strategy, providing firm-wide training and drafting their second sustainability report.
The client successfully developed a comprehensive sustainability strategy tailored to their market and country context. This strategy is the key driver of their sustainability efforts. The sustainability report, which communicates the strategy, received positive investor feedback and positioned the company as transparent and forward-thinking, aligning with industry best practices. NPA's ongoing support has enhanced the client's sustainability efforts, improving data collection methods, identifying gaps for future analysis, and reinforcing their long-term commitment beyond reporting.