Table 2 Overview of how to adopt the... | Emerald Publishing

Table 2

Overview of how to adopt the CEPAR® Model for a business to evaluate the underlying ESG-related issues

CEPAR® Model	Question and Guidelines
Challenge	What is your Challenge? ➢ Identify one or more core business challenges related to ESG risks and opportunities, such as (E) environmental issues of carbon emissions, waste management, pollution; (S) social issues of employee benefits, Diversity, Equality and Inclusion (DEI) issues, human capital management; and (G) governance issues of board diversity, general business ethics.
Evaluation	Is your challenge material to the corporation’s business? ➢ Consider double materiality in light of both the impact materiality on society and the environment and the financial materiality of its implications. This step confirms the materiality of the challenges identified using the materiality matrix of the corporate stakeholders, if available, Sustainability Accounting Standard Board (SASB) materiality framework checking, and also stakeholder analysis by identifying both long-term and short-term goals of stakeholders. ➢ Stakeholder analysis: identify major stakeholders and prepare a stakeholder impact map (Schoenmaker and Schramade, 2019, pp. 136-137). ➢ The materiality analysis confirms the relevance of the challenges to the long-term sustainability of the corporation and justifies its allocation of resources. ➢ It should prioritise the challenges if more than one challenge were identified in step 1.
Planning	What are the policy directions that are beneficial to the corporation and the stakeholders? ➢ Determine the policy plans that are beneficial to the ESG risk mitigation/transition to a sustainable world. Develop a strategic plan, refined business proposition and even a modified business model that is adaptable to changing circumstances. ➢ Discuss whether the plans contribute to frameworks like the specific goals of the SDGs, ISO standards, SBTi, TCFD, TNFD, GRI, SASB, CSRD, IFRS S1 & S2, etc. ➢ From the policy plan, the direction to determine the policy’s success will be discussed. ➢ Set target performance and metrics.
Action	How can you implement the action plan? ➢ Illustrate the action plan (i.e., resource allocation, incentive schemes for management and employees, training and culture-building activities, etc.) to facilitate the implementation of the ESG solution. Consider the concept of just transition in the process. ➢ The solution to ESG risks and opportunities intends to help corporations sustain long-term sustainability and competitiveness by re-affirming social license to operate, enhancing customer loyalty, improving efficiency, alleviating climate physical and transition risks, reducing regulatory pressure, increasing employee satisfaction, mitigating negative externalities, or ensuring benefit from sustainability megatrends.
Review	How would you evaluate the implementation outcome? ➢ Review the outcome of the actions taken against various specific key performance indicators. The key performance indicators take into account qualitative as well as quantitative benchmarks to determine the success of the policy plan. The key performance indicators can reference the sustainability report data disclosure required by the government for listed companies and international standards. ➢ Evaluate if the outcome meets the desired goals and identify areas for improvement. This stage also serves as a feedback loop to modify the policy plan and target performance defined in the Planning step.

CEPAR® Model	Question and Guidelines
Challenge	What is your Challenge?➢ Identify one or more core business challenges related to ESG risks and opportunities, such as (E) environmental issues of carbon emissions, waste management, pollution; (S) social issues of employee benefits, Diversity, Equality and Inclusion (DEI) issues, human capital management; and (G) governance issues of board diversity, general business ethics.
Evaluation	Is your challenge material to the corporation’s business?➢ Consider double materiality in light of both the impact materiality on society and the environment and the financial materiality of its implications. This step confirms the materiality of the challenges identified using the materiality matrix of the corporate stakeholders, if available, Sustainability Accounting Standard Board (SASB) materiality framework checking, and also stakeholder analysis by identifying both long-term and short-term goals of stakeholders. ➢ Stakeholder analysis: identify major stakeholders and prepare a stakeholder impact map (Schoenmaker and Schramade, 2019, pp. 136-137). ➢ The materiality analysis confirms the relevance of the challenges to the long-term sustainability of the corporation and justifies its allocation of resources. ➢ It should prioritise the challenges if more than one challenge were identified in step 1.
Planning	What are the policy directions that are beneficial to the corporation and the stakeholders?➢ Determine the policy plans that are beneficial to the ESG risk mitigation/transition to a sustainable world. Develop a strategic plan, refined business proposition and even a modified business model that is adaptable to changing circumstances. ➢ Discuss whether the plans contribute to frameworks like the specific goals of the SDGs, ISO standards, SBTi, TCFD, TNFD, GRI, SASB, CSRD, IFRS S1 & S2, etc. ➢ From the policy plan, the direction to determine the policy’s success will be discussed. ➢ Set target performance and metrics.
Action	How can you implement the action plan?➢ Illustrate the action plan (i.e., resource allocation, incentive schemes for management and employees, training and culture-building activities, etc.) to facilitate the implementation of the ESG solution. Consider the concept of just transition in the process. ➢ The solution to ESG risks and opportunities intends to help corporations sustain long-term sustainability and competitiveness by re-affirming social license to operate, enhancing customer loyalty, improving efficiency, alleviating climate physical and transition risks, reducing regulatory pressure, increasing employee satisfaction, mitigating negative externalities, or ensuring benefit from sustainability megatrends.
Review	How would you evaluate the implementation outcome?➢ Review the outcome of the actions taken against various specific key performance indicators. The key performance indicators take into account qualitative as well as quantitative benchmarks to determine the success of the policy plan. The key performance indicators can reference the sustainability report data disclosure required by the government for listed companies and international standards. ➢ Evaluate if the outcome meets the desired goals and identify areas for improvement. This stage also serves as a feedback loop to modify the policy plan and target performance defined in the Planning step.

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