How to apply and adjust the ESG strategy in firms and institutions to meet all of the environmental, social, and governance criteria?
ESG implementation in developing countries
Number of replies: 9
In reply to Amel Medani Mohamed Mohamed Ahmed
Re: ESG implementation in developing countries
by Madhan Kumaresan -
Applying and adjusting an ESG strategy within firms and institutions involves a multi-step approach to integrate sustainability, ethical practices, and strong governance into the organization's operations. The goal is to align business practices with the broader societal objectives of addressing environmental sustainability, social equity, and transparent, responsible governance.
Hi Madhan, thank you for your reply.
In general, your answer is correct. Could you elaborate on it within the context of developing countries?
Perhaps by citing a case study of successful ESG implementation in such regions?
In general, your answer is correct. Could you elaborate on it within the context of developing countries?
Perhaps by citing a case study of successful ESG implementation in such regions?
Hi Amel, thank you for the excellent question.
Implementing ESG in developing countries, where the general context of ESG, policies, climate issues, social structures, and ecological challenges differs significantly from developed countries—where most ESG frameworks, standards, ratings, and regulations are currently established as benchmarks—requires a unique approach. It is crucial for us in Asia, ASEAN, and Africa to think this through more thoroughly.
I strongly recommend that ESG practitioners in developing regions focus on understanding materiality aspects (begin with single materially assessment - then proceeding to double materiality assessmet) to prioritize and guide their follow-up actions effectively
Implementing ESG in developing countries, where the general context of ESG, policies, climate issues, social structures, and ecological challenges differs significantly from developed countries—where most ESG frameworks, standards, ratings, and regulations are currently established as benchmarks—requires a unique approach. It is crucial for us in Asia, ASEAN, and Africa to think this through more thoroughly.
I strongly recommend that ESG practitioners in developing regions focus on understanding materiality aspects (begin with single materially assessment - then proceeding to double materiality assessmet) to prioritize and guide their follow-up actions effectively
In reply to Amel Medani Mohamed Mohamed Ahmed
Re: ESG implementation in developing countries
by Yihunie Bekalu Babil -
The main Challenge for integrating ESG is commitment of the Government who regulate and Company.
Hi Yihunie,
While it's true that governments in developing countries may lack advanced ESG policies, strategies, and programs, this presents an excellent opportunity for the private sector and academia to collaborate with the government. By working together, they can effectively address these challenges, guided by the principle of 'think global, act local"
While it's true that governments in developing countries may lack advanced ESG policies, strategies, and programs, this presents an excellent opportunity for the private sector and academia to collaborate with the government. By working together, they can effectively address these challenges, guided by the principle of 'think global, act local"
In reply to Amel Medani Mohamed Mohamed Ahmed
Re: ESG implementation in developing countries
by Yudhi Pradhana -
Hi Amel, thank you for the excellent question.
Implementing ESG in developing countries, where the general context of ESG, policies, climate issues, social structures, and ecological challenges differs significantly from developed countries—where most ESG frameworks, standards, ratings, and regulations are currently established as benchmarks—requires a unique approach. It is crucial for us in Asia, ASEAN, and Africa to think this through more thoroughly.
I strongly recommend that ESG practitioners in developing regions focus on understanding materiality aspects (begin with single materially assessment - then proceeding to double materiality assessmet) to prioritize and guide their follow-up actions effectively
Implementing ESG in developing countries, where the general context of ESG, policies, climate issues, social structures, and ecological challenges differs significantly from developed countries—where most ESG frameworks, standards, ratings, and regulations are currently established as benchmarks—requires a unique approach. It is crucial for us in Asia, ASEAN, and Africa to think this through more thoroughly.
I strongly recommend that ESG practitioners in developing regions focus on understanding materiality aspects (begin with single materially assessment - then proceeding to double materiality assessmet) to prioritize and guide their follow-up actions effectively
Implementing Environmental, Social, and Governance (ESG) practices in developing countries involves adapting global ESG standards to local contexts and needs. This includes focusing on environmental sustainability, such as addressing pollution and promoting renewable energy, while supporting social development through access to education, healthcare, and fair labor practices. Strengthening governance through improved transparency and ethical business practices is key. Engaging stakeholders like local communities, governments, and NGOs ensures that initiatives are effectively implemented. Monitoring, reporting progress, and building capacity through training further support the successful integration of ESG practices, ultimately fostering long-term sustainable development.
In reply to Amel Medani Mohamed Mohamed Ahmed
Re: ESG implementation in developing countries
by Aina MS Tauya -
To meet environmental, social, and governance (ESG) criteria, firms and institutions need to move beyond treating ESG as a separate compliance exercise and instead integrate it into their overall business strategy. This starts with understanding the organisation’s specific impacts, risks, and opportunities across all three ESG pillars.
From an environmental perspective, organisations should first assess their environmental footprint, such as energy use, emissions, waste, and resource consumption. Based on this assessment, realistic targets can be set, for example reducing carbon emissions, improving energy efficiency, or transitioning to more sustainable materials. These goals should be aligned with the organisation’s size, industry, and operating environment and reviewed regularly to adapt to new regulations or climate risks.
On the social side, firms need to focus on how they treat employees, customers, suppliers, and communities. This includes fair labour practices, health and safety, diversity and inclusion, and responsible supply chain management. Institutions can adjust their ESG strategy by listening to stakeholder feedback, strengthening employee engagement, and ensuring that social initiatives address real needs rather than being symbolic. Strong social practices often lead to higher employee morale, improved reputation, and stronger long‑term relationships with stakeholders.
For governance, clear leadership, ethical decision‑making, and accountability are essential. Organisations should establish strong governance structures, such as independent boards, transparent reporting, and clear risk management frameworks. Policies around ethics, compliance, executive remuneration, and anti‑corruption need to be enforced consistently. Governance practices should also evolve as the organisation grows or operates in new markets.
To ensure balance across all three pillars, firms should use recognised ESG frameworks or standards, track performance through measurable indicators, and report progress transparently. Regular reviews and updates help organisations adjust their ESG strategy as expectations from regulators, investors, and society continue to change.
Ultimately, an effective ESG strategy is one that is embedded into daily operations, supported by leadership, and continuously improved. When applied thoughtfully, ESG does not limit profitability but strengthens resilience, trust, and long‑term value creation.
From an environmental perspective, organisations should first assess their environmental footprint, such as energy use, emissions, waste, and resource consumption. Based on this assessment, realistic targets can be set, for example reducing carbon emissions, improving energy efficiency, or transitioning to more sustainable materials. These goals should be aligned with the organisation’s size, industry, and operating environment and reviewed regularly to adapt to new regulations or climate risks.
On the social side, firms need to focus on how they treat employees, customers, suppliers, and communities. This includes fair labour practices, health and safety, diversity and inclusion, and responsible supply chain management. Institutions can adjust their ESG strategy by listening to stakeholder feedback, strengthening employee engagement, and ensuring that social initiatives address real needs rather than being symbolic. Strong social practices often lead to higher employee morale, improved reputation, and stronger long‑term relationships with stakeholders.
For governance, clear leadership, ethical decision‑making, and accountability are essential. Organisations should establish strong governance structures, such as independent boards, transparent reporting, and clear risk management frameworks. Policies around ethics, compliance, executive remuneration, and anti‑corruption need to be enforced consistently. Governance practices should also evolve as the organisation grows or operates in new markets.
To ensure balance across all three pillars, firms should use recognised ESG frameworks or standards, track performance through measurable indicators, and report progress transparently. Regular reviews and updates help organisations adjust their ESG strategy as expectations from regulators, investors, and society continue to change.
Ultimately, an effective ESG strategy is one that is embedded into daily operations, supported by leadership, and continuously improved. When applied thoughtfully, ESG does not limit profitability but strengthens resilience, trust, and long‑term value creation.
In reply to Amel Medani Mohamed Mohamed Ahmed
Re: ESG implementation in developing countries
by Md. Ashik Mahmud -
Applying ESG strategy in developing countries requires a context-sensitive approach rather than directly adopting frameworks designed for developed economies. Firms should prioritize affordable clean energy transitions, responsible waste management, and climate resilience planning. Labor rights, community inclusion, and supply chain transparency carry the most weight. Companies must align with local social realities - fair wages, gender equity, and worker safety - where regulatory enforcement is often weak and self-governance matters more. Building transparent reporting systems, reducing corruption risk, and strengthening board accountability are foundational steps. Institutions should adopt globally recognized frameworks as well.