The Mishcon Purpose Framework is a global "standard" for ESG considerations, focusing on governance and management for international businesses. Combining strategic and legal aspects, it builds on current regulatory regimes and trends, international codes, frameworks and best corporate practice. Providing a robust and consistent process for businesses, the Framework considers the eight material factors affecting your company’s ability to create value and which could alter investment decisions. By assessing each factor in detail relevant to your organisation, you will be able to understand market expectations, mitigate business and legal risk, and capture new business opportunities. Purpose and Mission The first step is to assess your organisation’s purpose and mission. The aim is to determine your goals, values and strategy, and what these mean for your stakeholders. A strong purpose statement embedded into business strategy can create significant value by attracting new customers/clients, reducing costs and helping your organisation stay ahead of regulatory trends. Values and Culture Once your purpose has been defined, it is time to align your values and culture, including the attitudes, standards and beliefs of your organisation and its employees. Values reflect what a company stands for so must reflect its ultimate purpose. Stakeholder Engagement The next step is to assess the role of stakeholders in your purpose strategy and to involve them in its development. Stakeholder engagement enables context, risks and opportunities to be assessed more effectively. Crucially, this process also reduces potential gaps between stakeholders' expectations and management's goals and strategy, identifying and reducing the risk of potential liabilities. Vision and Value Creation Goals Your vision and value creation goals should align with your purpose. They should be SMART (specific, measurable, achievable, relevant and time-bound) and provide a framework from which to measure success. Increasingly, business performance is not only measured on financial capital, but intangible, natural and social capital. To benefit from these forms of capital, businesses must consider their social and environmental impact. Inventory of Capitals and Audit For your business to be successful, all assets and liabilities must be managed effectively. These include intangible assets, which may not be reflected in internal reports and annual accounts. These assets and liabilities should be identified to establish their impact on your ability to create value and raise capital. Governance, Compliance and Corporate Reporting Your company’s governance provides the framework for achieving its purpose, value creation goals and vision. It also ensures effective management and compliance with regulatory and legal obligations. To build long-term value, governance must embed ESG into its agenda and be reported to your stakeholders. ESG Strategy Review To embed sustainable purpose, ESG must be part of your core business strategy and an integral pillar of the company's value proposition to clients and society. This requires an understanding of your current ESG profile, what ESG means to your business, and what changes may be required to create value and manage transitional risks. Connectivity and Outcomes This stage of the Mishcon Purpose Framework will enable you to assess how social, environmental and financial capital interacts, and understand the opportunities and trade-offs associated with your ESG strategy, and how to manage them. Implementing the Purpose Framework Is your business ESG ready? Do these steps underpin the day-to-day governance and management of your business? Are you running risks you are not aware of? Whether you're coping with an emerging crisis or looking to seize opportunities, we are here to help you. We'd like to offer you a free, 30-minute consultation with one of our Mishcon Purpose experts, to further discuss how you could apply the Purpose Framework to your corporate strategy. Book now