ESG Target Operating Model

The increasing regulatory requirements as well as the higher expectations and transparency requirements of the capital market and investors require significantly more capacities and capabilities than are currently available in most companies.

Existing organisational and reporting structures are often insufficient to manage and operationalise ESG requirements in a targeted manner and thus require adjustments to organisational structure, governance and processes.

These need to be redefined to ensure cross-functional cooperation efficiently and in compliance with the rules. Clear roles, responsibilities and new working models are needed. Skills and understanding of ESG are usually not fully in place and need to be built up gradually.

Especially due to the CSRD requirements, companies have to deal with more and more information from different parts of the company. Therefore, a technology-supported solution is needed to determine the KPIs and for the associated reporting.

The ESG Target Operating Model provides a framework and defined approach to address the corporate strategy and business model in terms of ESG requirements and defines the future direction of operations within the following dimensions:

• Role: mission / vision / purpose, ESG ambition level and maturity, strategic goals and roadmap.
• Governance: design of committees and boards, integration into the corporate governance structure, reporting channels
• Organisation: organisational structure, governance, roles and responsibilities (RACI)
• Processes: Goals and KPIs, process re-design, activity split.
• Technology: benchmarking, functional requirements, data models and ESG tool selection
• Employees: ESG in corporate culture and change management, skill development (training and enablement), empowerment and ESG community

KPMG follows an integrated 4-step approach, which includes the following steps: 

1. Development of objectives and strategic measures 
2. Derivation of organisational structure and governance 
3. Derivation of ESG processes, implementation roadmap
4. Implementation including change management and enablement

Benefit from our experience and our best-practice project approach, which has already proven itself in numerous projects. 

Through very close and trusting cooperation in our co-creation project approach, we ensure within the framework of the project that you and your employees are empowered to continue the topics in the line independently.

You can also take advantage of our large international KPMG ESG network, from which we can call in the relevant ESG specialists for the project if required.