ESG and Corporate Strategy Corporate Transformation and ESG Governance Agenda on the Premise of Long-Term Sustainable Value Transition ESG Governance Narrative: A. Leading strategic transformation in representation of broader global agenda: • Pivot of ESG engagement emerges as a key global management agenda for corporate strategy transformation, considering in particular outstanding ESG-related risk-return dynamics on the premise of forward-looking portfolio decision driven by governance of sustainability market and policy choices; • Reciprocal growth value proposition only comes together once focus narrative of the governance agenda embraces outstanding transitional risk as forward-looking opportunities, while offering smart and effective mitigation and adaptation strategy that makes sense of the complex global situation (see illustration of climate governance from perspective of adaptation and resilience from the World Bank Group), without discounting shared ambition on behalf of shareholders, stakeholders and partners all across the globe; B. Balancing market push with value-creation pull in advancing ESG risk premiums: • Value transition pathways differentiate choices of governance and strategy, notably in the dialogs of competitive benchmarking on a whole-of-ecosystem level, but also in purpose-driven governance system that seeks to overcome compounding global risk (climate-related risks across the global value chains as addressed by disclosure standards such as ISSB/TCFD), thereby winning sustainable and resilient competitive advantages over the long run such as by matching maturities of pension funds with those of green bonds in emerging markets (considering constant flows of coupon payment over a long period of time from assets denominated by solar photovoltaic or offshore wind farms); C. Charting forward transition with shareholders and stakeholders across the globe: • Highgrounds of the ESG governance nevertheless offer a much broader perspective of how business communities and financial markets collectively turn around, and charting forward a critical structural transition with long-run systemic impact that, as a consequence, brings together mutually-reinforcing sustainability environment on the shared premises of people and planet—all in one coherent narrative (see Equator Principles that advocate UN Guiding Principles and 2015 Paris Agreement in the same governance narrative); • Structural corporate transformation after all requires governance decision-making process that balances business and economic but also financial and other key priorities in a broader framework of sustainable and resilient value governance, notably in integration to shareholder's and stakeholder's dialogs over a long-term transition pathway, whereupon ESG has a unique potential to lead the discussion with meaningful leadership compass that makes sense of the global complexity at today's crossroads—while leaving none behind.

1. Bangkok, Thailand / Page 1 (3) Edition: May 26, 2022
ESG and Corporate Strategy
Corporate Transformation and ESG Governance Agenda on the
Premise of Long-Term Sustainable Value Transition
Siripong Treetasanatavorn
Sloan Fellow, Massachusetts Institute of Technology
ESG Governance Narrative:
A. Leading strategic transformation in representation of broader global agenda:
• Pivot of ESG engagement emerges as a key global management agenda
for corporate strategy transformation, considering in particular outstanding
ESG-related risk-return dynamics on the premise of forward-looking portfolio
decision driven by governance of sustainability market and policy choices;1
• Reciprocal growth value proposition only comes together once focus
narrative of the governance agenda embraces outstanding transitional risk as
forward-looking opportunities, while offering smart and effective mitigation
and adaptation strategy that makes sense of the complex global situation2
(see illustration of climate governance from perspective of adaptation and
resilience from the World Bank Group), without discounting shared ambition
on behalf of shareholders, stakeholders and partners all across the globe;
B. Balancing market push with value-creation pull in advancing ESG risk premiums:
• Value transition pathways differentiate choices of governance and strategy,
notably in the dialogs of competitive benchmarking on a whole-of-ecosystem
level, but also in purpose-driven governance system that seeks to overcome
compounding global risk (climate-related risks across the global value chains
as addressed by disclosure standards such as ISSB/TCFD³), thereby winning
sustainable and resilient competitive advantages over the long run such as by
matching maturities of pension funds with those of green bonds in emerging
markets (considering constant flows of coupon payment over a long period of
time from assets denominated by solar photovoltaic or offshore wind farms);
C. Charting forward transition with shareholders and stakeholders across the globe:
• Highgrounds of the ESG governance nevertheless offer a much broader
perspective of how business communities and financial markets collectively
turn around, and charting forward a critical structural transition with long-run
systemic impact that, as a consequence, brings together mutually-reinforcing
sustainability environment on the shared premises of people and planet—all
in one coherent narrative (see Equator Principles that advocate UN Guiding
Principles and 2015 Paris Agreement in the same governance narrative⁴);

2. S. Treetasanatavorn. ESG and Corporate Strategy
Edition: May 26, 2022 Bangkok, Thailand / Page 2 (3)
Illustration of World Bank’s Climate Governance System Substantiated by
Leadership across Market, Policy and Development Pillars2
• Structural corporate transformation after all requires governance decision-
making process that balances business and economic but also financial and
other key priorities in a broader framework of sustainable and resilient value
governance, notably in integration to shareholder's and stakeholder's dialogs
over a long-term transition pathway,⁵ whereupon ESG has a unique potential
to lead the discussion with meaningful leadership compass that makes sense
of the global complexity at today's crossroads—while leaving none behind.

3. S. Treetasanatavorn. Corporate Transformation and ESG Governance Agenda
Bangkok, Thailand: Page 3 (3) Edition: May 26, 2022
References (in appearance order):
1. See leadership view from Paul Polman and Andrew Winston at Harvard Business
Review (2022): https://hbr.org/2022/04/yes-investing-in-esg-pays-off
2. See publication from the World Bank (2019) on risk-based structural approach for
climate change adaptation and resilience as an example at:
https://documents1.worldbank.org/curated/en/519821547481031999/The-World-
Bank-Groups-Action-Plan-on-Climate-Change-Adaptation-and-Resilience-Managing-
Risks-for-a-More-Resilient-Future.pdf
3. See discussion of ESG and transformative resilient impact from Davos (2022):
https://www.weforum.org/events/world-economic-forum-annual-meeting-
2022/sessions/global-esg-for-global-resilience
4. See latest publication of the Equator Principles (2020) as an example at:
https://equator-principles.com/about-the-equator-principles/
5. See broader discussion in this topic from Stakeholder Capitalism (2021) by Prof.
Klaus Schwab at: https://www.weforum.org/about/book