{"id":54720,"date":"2026-08-24T11:41:23","date_gmt":"2026-08-24T09:41:23","guid":{"rendered":"http:\/\/www.turner.nl\/uncategorized\/esg-strategy-execution\/"},"modified":"2026-08-24T11:41:25","modified_gmt":"2026-08-24T09:41:25","slug":"esg-strategy-execution","status":"publish","type":"post","link":"https:\/\/www.turner.nl\/en\/financial-services\/esg-strategy-execution\/","title":{"rendered":"ESG = Strategy Execution"},"content":{"rendered":"\t\t
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ESG = Strategy Execution<\/h1>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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ESG = Strategy Execution<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Turner provides its clients with timely, fresh, and relevant insights into its markets and strategic e-<\/em>execution issues that arise there. In this article,<\/span> Jo\u00ebl Croese<\/a>, a consultant at Turner<\/span>, <\/span>Financial services<\/a> in the im<\/em>the ESG framework and its implications for Strategy Execution.<\/em><\/p>

A range of laws and initiatives, such as the Sustainable Finance Regulation (SFR) and the European Union\u2019s Green Deal, are compelling financial institutions to take action in the area of ESG\u2014that is, environmental<\/em>, social<\/em>, and governance<\/em>. Whether organizations see themselves as changemakers or simply want to do the bare minimum, they will have to comply with laws and regulations. Often, institutions do not lack good ideas in the area of ESG, but they get stuck in the execution phase. Turner\u2019s advice: view ESG as a strategic execution issue\u2014not merely a compliance project\u2014to get initiatives off the ground and turn them into tangible results.
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ESG initiatives are becoming increasingly relevant to the financial sector. But to what extent are financial institutions succeeding in getting their ESG initiatives off the ground? Is Strategy Execution effective? This study, conducted by Turner, shows that many organizations in the financial services sector are struggling with the implementation of ESG initiatives. Common pain points include the absence of a central vision, a lack of consensus among top management, challenges related to the ever-changing nature of the initiatives, a lack of understanding of operational realities, and a lack of coordination to properly align processes and data. <\/span><\/p>

Drawing on our expertise in Strategy Execution, we have identified three Success Factors that enable organizations to successfully get ESG initiatives off the ground:<\/span><\/p>

  1. Adopt an agile strategy that is aligned with the long-term vision<\/span><\/li>
  2. Distinguish between enforcement ownership and beneficial ownership, and form an Execution Coalition<\/span><\/li>
  3. Emphasize \u201cusing a logical process design\u201d rather than simply retrieving data, so that data requests are better aligned with the processes<\/span><\/li><\/ol>


    This article emphasizes the importance of a structured yet pragmatic approach to the effective implementation of ESG initiatives, taking into account both legal and regulatory requirements and the actual creation of value.
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    Every organization in the financial services sector has to deal with ESG. Some organizations want to make the world a better place, while others want \u201cmerely\u201d to comply with increasingly stringent laws and regulations. Despite growing awareness of ESG and its potential strategic benefits, many organizations continue to struggle with the successful implementation of ESG initiatives. <\/span>
    <\/span><\/p>

    A recent study of the financial services sector in the Netherlands, conducted by Turner, shows that the execution of ESG initiatives bears a strong resemblance to the challenges of \u201cregular\u201d Strategy Execution. The pain points organizations experience when executing these ESG initiatives are, at their core, no different from the pain points experienced when executing conventional strategic initiatives. <\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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    Common Challenges in ESG Implementation<\/span><\/p>

    The study highlights a set of common challenges that prevent companies from Exceling in the implementation of ESG initiatives:<\/p>

    1. The lack of a central vision leads to fragmentation:<\/strong> In many cases, the lack of a central vision on ESG leads to a fragmented approach, in which teams, departments, or regions apply their own interpretation of ESG principles and attempt to implement them independently of one another. This can inadvertently result in overlaps, duplication of effort, or a failure to leverage shared resources and knowledge. This lack of centralization limits the potential impact of ESG as a whole. <\/li>
    2. A lack of consensus among (senior) management:<\/strong> A lack of consensus among (senior) management regarding ESG within organizations also poses a challenge. One consequence of these divergent viewpoints is that a clear shift in ESG policy often occurs following \u201ca change in leadership.\u201d This inconsistency in policy implementation hinders the establishment of a clear and stable approach to ESG within organizations. <\/li>
    3. Challenges Posed by Its Ever-Changing Nature:<\/strong> ESG is not an issue that can be implemented in a linear fashion, since it is simply impossible to define a definitive \u201cend state\u201d for exactly what sustainable business practices entail. Organizations often struggle with this and view ESG as a fixed point on the horizon rather than a \u201cmoving target.\u201d Furthermore, changes in ESG policy or evolving laws and regulations can lead to the premature write-off of assets. This exposes organizations to additional financial risks. <\/li>
    4. Top management does not always understand operational realities:<\/strong> Top management does not always understand operational realities. As a result, it is difficult to effectively implement the ESG policy established at headquarters. It is also difficult to translate these policies\u2014which are based on consolidated and therefore abstract KPIs\u2014into practical terms on the front lines. For operational teams focused on specific KPIs, such as volume or profit margin, it is not always clear how they can influence ESG objectives. <\/li>
    5. No coordinated approach to align processes with reporting metrics:<\/strong> There is a mismatch between existing processes and the required ESG reporting metrics. Because of this mismatch, data from different sources must be combined to arrive at the required reporting metrics. As a result, data quality cannot always be guaranteed. There is a lack of a coordinated approach to ensure that ESG reporting metrics align properly with existing processes or, conversely, to adapt existing processes to better align with ESG reporting metrics. <\/li><\/ol>

      Success Factors for ESG Implementation<\/h3>

      Based on the identified pain points, we draw on our expertise in Strategy Execution to highlight three factors that, in our experience, lead to successful Strategy Execution\u2014including when it comes to ESG.<\/p>

      1. Adopt an agile strategy that is aligned with the long-term vision<\/strong>Ensure an adaptive strategic approach to ESG implementation. Do not view ESG as a one-time project, but rather as an ongoing process. Formulating long-term goals is important, but so is the flexibility to respond to changing laws, regulations, or public opinion. This requires a strategy built on agility. This form of Strategy Execution demands extreme awareness and well-informed decision-making, along with the associated information gathering and interpretation. Only in this way can the necessary interventions be carried out in a timely manner to achieve the objectives.An agile strategy incorporates proactive risk management. It is important for organizations to thoroughly assess the risks associated with ESG initiatives. Consider, for example, investment opportunities that promise certain returns but do not yet have a track record. This makes it difficult to determine whether something is a good investment in this new market. By actively identifying and managing these risks, the strategy can remain agile. <\/li>
      2. Distinguish between execution and benefit ownership, and form an Execution Coalition<\/strong>Leadership plays a key role in the implementation of a successful ESG strategy. It is important to understand that there are two types of ownership and that different roles must take on these ownership responsibilities. The first type is execution ownership of the initiative, and the second is benefits ownership\u2014that is, the results that arise in practice from the execution of the initiatives. A clear distinction between these two types of ownership prevents ESG initiatives\u2014conceived, for example, at headquarters\u2014from ultimately failing to add value or proving unworkable in practice.One way to give shape to this distinction is by establishing an Execution Coalition. This Execution Coalition institutionalizes the importance of alignment between the employees who conceive the initiative and those who must put the resulting benefits to use. This concept ensures effective alignment between those responsible for day-to-day operations and those responsible for strategic change. This requires a structured framework for this alignment to prevent the organization from becoming dependent on employees who just happen to be willing to coordinate. The Execution Coalition goes beyond the project-based aspect; it is, in fact, the driving force behind the ESG initiatives.By clearly distinguishing between execution and benefit ownership, we can prevent ESG from becoming merely a compliance project. Thanks to benefit ownership, there is a sharp focus on the added value of the ESG initiatives, and the legally required reporting metrics take on a supporting role. In this way, the ESG initiatives can become a collection of strategic projects rather than merely a compliance project. <\/li>
      3. Emphasize \u201cusing a logical process design\u201d rather than simply collecting data, so that the data requirements better align with the processes<\/strong>Link the solution or design to the goal or requirements arising from the ESG initiatives. Measuring and reporting the impact of ESG initiatives requires reliable data. Delivering this data should not become a matter of cut-and-paste work behind the scenes, so it is important to incorporate this into the design phase. It is therefore wise to identify up front which processes are affected by or influence the delivery of the desired reporting metrics.Therefore, emphasize \u201cadopting a logical process design\u201d rather than simply retrieving data, so that the data requirements align better with the processes. This requires a top-down approach that takes a holistic view of the IT landscape. Try to understand the problem as a whole rather than addressing isolated solutions individually. <\/li><\/ol>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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        In short: Implementing ESG initiatives is too important to leave their success to chance. Therefore, don\u2019t view ESG as just another compliance project, but rather as a Strategy Execution issue. The management of ESG initiatives belongs within organization-wide portfolio management, just like all other strategic initiatives. Because: Strategy = Execution. <\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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