Corporate Sustainability Strategic, Finance & Governance Plan

Realizing the Challenge
of Making Sustainability Work
A framework to develop and Implement a
Corporate Sustainability
Strategy, Finance & Governance Plan

Corporate Sustainability
Strategy, Finance & Governance Plan
Framework
Value-Chain
Strategies & Goals Setting
Current &
Prospective ESG Assessment
Primary Activities
Building Sustainability Mainstream Framework
Action
Plan
Identify Business Drivers
Stakeholder-Based Management
Investor-Based Management
Corporate Sustainability-Risk Strategic Map
External Impacts
Gap Analysis
SWOT
Support Activities
Sustainability Governance Strategies & Goals
Goals
Detailing &
Breaking-Down
Create a Corporate Sustainability VISION
Sustainability Mainstream
Sustainability Strategy Key-Areas
Implementation,
Monitoring &
Review Tools
Sustainability Finance Strategies & Goals
Sustainability Governance
Stakeholder
Engagement
Process
Scope of
Competitiveness
Value-Chain Advantages on Sustainability Initiatives
Sustainability
Communication
Platform
Sustainability Finance
ROSS
Return on Sustainability Strategy
ESG
Benchmarking
Sustainability
Reporting
Developing Leadership Competence for Sustainability Value Creation

Corporate Sustainability Mainstream
& the Value-Chain Intersection Paradigm
Support Activities
Primary Activities
Sustainability Mainstream

Corporate Sustainability from the
Value-Chain Perspective
Company Infrastructure
Support Activities & Knowledge Capital
Sustainability BI & analytics platform;
Capex-Opex sustainability-based decisions;
Corporate Sustainability Governance Structure
Margin
Human Capital Management
Creating and internalizing a culture for sustainability;
Developing capabilities on sustainability-based management ;
Corporate Sustainability Education; Sustainability-oriented Compensation System
Innovation and
R&D Capital
Environmental-based design;
Clean technologies development;
Environmental material specifications
ROSS
Leadership & Competence
Capital
Promptness and ability to convert Sustainability Strategy into Shareholders/Stakeholders Value;
Stakeholder-Based Management Approach
Stakeholder Sustainability Education initiatives
Corporate
Sustainability
Mainstream
Sustainability Strategy:
Business Drivers & Key-Performance Measuring; Benchmarking; ESG Assessment; Vision, Mission; Objectives/Goals; Action Plan ; Incentives
Sustainability Governance Framework:
Compliance & Legal ; Policies; Accountability; Commitments; Transparency; Reputation; Stakeholders Engagement; Value-Chain Ethical Procedures; Communication; Reporting
Sustainability Finance & ROSS:
TBL Value Creation; Accounting Framework; TBL Balance Sheet; EP & DJSI Standards; Risk Map & Measuring;
Select Responsible suppliers & outsourcers;
Stimulating less-harmful material uses, safe storage, transportation and waste disposal
Life-cycle analysis and process implementation
Select Responsible distributors;
Stimulating less-harmful material safe storage, transportation ,
packaging and waste disposal
Corporate image & reputation
ROSS
Stimulating ethical and anti-corruption competing practices, fraud prevention, new process for reducing pollutants discharge and waste; improving energy use; striving for upstream-downstream ESG internationally acceptable standards adoption
Carbon & Water Footprint
Margin
Upstream
Logistic &
Supply Chain
Inbound
Logistic & Operations
Downstream
Logistic & Channels
Marketing
& Sales
End-Cycle
Services
Primary Activities

Corporate Sustainability-Risk Strategic Map
Sources of Either Value Creation or Destruction
Human Capital
Asset Protection
Technology
Operation
Financial
Business
Continuity
Domain of Traditional Shareholder-Based Corporate Strategic Plan
Implementation
Funding
Feasibility
Operation
Project Finance
Legal & Financial
Diligences
Organisation & Legal
Arrangements
Marketing & Sales
Local Arrangements
IPO
Plant Building
Production
Global Feasibility
Private Equity
Logistics Up & Down
Infrastructure
Equipment & Facilities
Core Business Design
Value-Chain Design
Free Cash Flow
Domain of the Capex-Opex Dilemma & Traditional Risk
Corporate Sustainability Strategic Plan Intersection
Domain of Corporate Sustainability-Risk Assessment
Legal & Regulatory
Global-Local Reputation
Environ mental
Social
Value-Chain Stakeholders
Changing Leadership
Domain of Corporate Environmental-Social Governance (ESG)
Benchmarking

ROSS
Return on Sustainability Strategy Framework
- From the Perspective of the Shareholder Value
ROSS
Return on Sustainability Strategy
Net Profit & Dividend
Market Value Premium
Free Cash Flow Generation
Revenue Growth
Cost of Capital Reduction
Margin Improvement
New
Market
Entry
Cutting-Edge Technology Innovation
Market
Share
Growth
Risk
Premium Gains
Market Ratings Grading
Corporate Brand & Reputation
Reputation Price Premium
Operation Cost & Productivity
Legal & Voluntary Compliance
ESG Human Capital Focus
New ES Focused Products
ESG Leadership Initiatives
Value-Chain Stakeholder Engagement
Power
of
Pricing
ESG Knowledge Capital
Corporate Sustainability Strategy
Corporate Sustainability Finance
Corporate Sustainability Governance
Sustainability-Risk Management Platform, Compliance & Legal Achievements, Sustainability Accounting & Balance Sheet, Sustainability Reputation Building; Stakeholders Value-Based Governance, Engagement Initiatives; Value-Chain’s Stakeholder Integration and Commitment; Leadership Competence for Sustainability Value Creation; Sustainability Communication & Reporting
Sustainability Fund Flow Mapping, Social & Environmental Cost Internalization,
Sustainability-Based Capex–Opex Decision,
Private Equity & Capital Markets Sustainability Ratings Improvement:: DJSI, UNEP Finance
Project Financing Sustainability Standards Achievement: Equator Principles, Fiduciary Responsibility, Insurance
Value-Chain Advantages on New Sustainability-Based Initiatives: Climate Change e Carbon Finance, Water Conservation and Quality, Alternative Energy Production & Use, Responsible Property Investing, Social Impacts, Biodiversity and Ecosystems
Environmental-based operational process, Clean Technologies Material Specifications Development
Corporate Sustainability Mainstream Value-Creation Drivers and Levers

José Antônio Campos Chaves
jac.chaves@environgrade.com
São Paulo
+55 11 3717-4188
Rio de Janeiro
+55 21 3717-4188
Belo Horizonte
+55 31 3231-4188
Wilmington
+1 302 482-8188