How can I create a custom sustainability strategy that doesn't follow any ESG directives?

Against the Grain Q&As

“ESG is a death march in the wrong direction, only slower.” - Robert Rubinstein, founder of TBLI Group

You’re likely well-acquainted with the limitations of traditional ESG standards and frameworks. While these approaches may tick boxes, they often fall short in creating measurable increases in resilience against systemic shocks. It’s time for a paradigm shift—one that moves beyond compliance and towards true resilience and risk mitigation against systemic shocks, without the need to comply with any of the plethora of ESG directives.

The key to this new approach lies in developing tailored, place-based strategies that directly enhance the resilience of the local ecosystems and communities within which your business operates. By partnering with un- and under-employed rural Communities of Practice involved in a wide range of regenerative disciplines—particularly those involving river basins and hydrological cycles—your company can easily meet stakeholder and regulatory climate mandates while also safeguarding against future economic, ecological and social disruptions. This is how you approach ESG as an opportunity to innovate and contribute to organizational growth, build a solid brand and reputation, and attain high employee retention and customer engagement.

Framework for Developing a Resilience-Focused Strategy

Here we define resilience as the capacity of an organization to anticipate, adapt to, and thrive amidst disruptive changes while maintaining core operations and creating value. It encompasses the ability to withstand and recover from systemic shocks across three interconnected domains:

1. Ecological Resilience: The organization’s capacity to operate sustainably within environmental constraints, adapting to climate-related disruptions, resource scarcity, and ecosystem changes. This includes:

   1. Maintaining operations during extreme weather events;

   2. Adapting to long-term changes in resource availability;

   3. Contributing to the regeneration of the natural systems upon which the business depends.

2. Economic Resilience: The ability to maintain financial stability and create value despite market volatility, supply chain disruptions, or shifts in the global economic landscape. This involves:

   1. Diversifying revenue streams and supply chains;

   2. Building financial buffers to weather economic downturns;

   3. Innovating business models to adapt to changing market conditions.

3. Social Resilience: The capability to thrive amidst societal changes, maintaining positive relationships with employees, communities, and other stakeholders even during times of social upheaval. This includes:

   1. Fostering an adaptable and engaged workforce;

   2. Maintaining trust and support from local communities;

   3. Navigating changing societal expectations and regulatory landscapes.

True organizational resilience is achieved when a company can not only withstand shocks in these three domains but can also leverage challenges as opportunities for innovation and growth. It’s about building a business that doesn’t just survive in a volatile world, but one that’s positioned to lead and thrive in the face of change.

Here’s what you need to do if you want to break free from the drudgery of the ESG alphabet soup:

• CDSB - Climate Disclosure Standards Board

• CSRD - Corporate Sustainability Reporting Directive

• EFRAG - European Financial Reporting Advisory Group

• GRI - Global Reporting Initiative

• IFRS - International Financial Reporting Standards

• IIRC - International Integrated Reporting Council

• ISSB - International Sustainability Standards Board

• SASB - Sustainability Accounting Standards Board (now merged with IIRC)

• SBTi - Science Based Targets initiative

• SBTN - Science Based Targets Network - ethical

• SCM - Stakeholder Capitalism Metrics

• SDPIs - Sustainable Development Performance Indicators - ethical

• TCFD - Taskforce on Climate-related Financial Disclosures

• TNFD - Taskforce on Nature-related Financial Disclosures

• UNGC - United Nations Global Compact

• VCS - Verified Carbon Standard

• VRF - Value Reporting Foundation, formed as a result of the merger between IIRC and SASB

Here’s the strategy:

1. Assess Your Local Context:

Begin by thoroughly mapping your company’s operational footprint and its relationship to local watersheds and ecosystems. Consider factors such as:

• Regional climate patterns and projected changes;

• Local water stress levels;

• Biodiversity health;

• Community dependence on natural resources.

2. Identify Key Stakeholders:

Engage with local communities, environmental experts, and government agencies to understand their needs, concerns, and expertise. This collaborative approach ensures your strategy is grounded in local realities and has broad support.

3. Set Measurable Resilience Goals:

Rather than abstract sustainability targets, partner with your chosen community to focus on concrete resilience metrics such as:

• Increase in water retention capacity of local watersheds;

• Improvement in soil health and carbon sequestration;

• Enhancement of biodiversity indicators;

• Reduction in community vulnerability to climate-related events.

4. Design Regenerative Projects:

Develop initiatives that actively restore and enhance natural systems. Examples include:

• Reforestation of degraded areas to improve water retention and reduce erosion;

• Restoration of wetlands to act as natural flood buffers;

• Implementation of regenerative agriculture practices to improve soil health;

• Creation of urban green spaces to mitigate heat island effects and improve water management.

5. Implement the RISE Framework:

The Resilient Integrated Stewardship Ecosystems RISE framework provides a holistic approach to measuring and managing your initiatives. Key components include:

• Integrating multiple forms of capital (natural, social, human, financial);

• Focusing on long-term system resilience rather than addressing singular symptoms;

• Emphasizing adaptability and learning in the face of change.

6. Monitor, Adapt, and Scale:

Implement robust monitoring systems to track the impact of your projects. Be prepared to adapt your approach based on results and changing conditions. As you demonstrate success, look for opportunities to scale your initiatives or replicate them in other regions. Handy tools and platforms include:

• Pledge measures and reports on emissions.

• Proof uses sustainability data to outperform the market.

• Restor connects people to scientific data, supply chains, funding, and each other to increase the impact, scale, and sustainability of restoration efforts.

• Wadappt connects global capital markets directly to people and projects on the ground.

7. Communicate Your Impact:

Share your journey and results with stakeholders, focusing on the tangible improvements in resilience and ecosystem health. Use storytelling to bring your projects to life and inspire others to take similar action.

Case Studies

Several forward-thinking companies have already embraced this regenerative approach:

1. Patagonia: Beyond their well-known environmental activism, Patagonia has invested in regenerative agriculture projects that improve soil health and water retention while sequestering carbon.

2. Seventh Generation: This household products company has focused on watershed restoration projects in regions where they source materials, creating a positive impact on local water systems.

3. No Issue: This packaging company has implemented innovative reforestation initiatives that not only offset their paper use but actively enhance local ecosystems and water cycles.

4. Everlane: Through their “Clean Water” program, Everlane has invested in water conservation and purification projects in their manufacturing communities, improving both environmental and human health.

By adopting this resilience-focused approach, you move beyond the limitations of traditional ESG frameworks. Instead of simply trying to do less harm, your company becomes an active force for regeneration and risk mitigation. This strategy not only creates measurable improvements in ecosystem health and community resilience but also positions your company to thrive in an increasingly uncertain future.

The key is to tailor this approach to your specific context. Your local geography, climate conditions, and business operations should all inform the development of your strategy. By grounding your efforts in the unique needs and opportunities of your region, you can create a sustainability strategy that delivers real, lasting impact.

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About the Author

Michael Haupt is a South African Resilience Strategist and author of Boer Maak 'n Plan: A Sustainability Survival Guide for the Gatvol Executive. He is currently bringing to life the Collab of Southern African Resilience (CSAR) and the Annual Southern African River Basin Regeneration Awards (SARBRA).

He loves working with visionary leaders who want to dump traditional ESG metrics and standards in favor of building measurable resilience against systemic risks.