Tailoring a robust ESG operating model for a superannuation fund

Australian companies are grappling with evolving Environmental, Social and Governance (ESG) regulations and increasing stakeholder demands. The International Sustainability Standards Board’s (ISSB) mandatory ASRS 2 disclosures exemplify this trend. Our client, a major superannuation fund, required a cohesive operating model to unify their ESG commitments and initiatives scattered throughout the business, and ensure compliance to incoming and future regulation.

Baringa was engaged to design an ESG operating model that meets increasingly stringent global ESG regulatory standards and withstand stakeholder scrutiny, avoiding greenwashing and litigation risk.

Designing a model for the client’s unique needs

Evaluating the state of your ESG initiatives for the first time can be overwhelming. We began with a comprehensive assessment of the client's ESG readiness, considering their current capabilities and mapped this against current and emerging ESG regulations and business commitments relevant to our client across all international markets they operate in.

Next, we helped the client define their ESG ambition state through facilitated stakeholder workshops. Together, we documented their ESG ambitions. We then developed a top-down operating model to meet the client’s ESG commitments, covering all aspects of their business.

Finally, we provided the client with a roadmap outlining the actions required to achieve target state capabilities, leveraging their existing strengths and supplementing with additional capability where required. The roadmap provided a detailed breakdown per key roles and functions

Throughout the process, we provided best practice examples for ESG capabilities and upskilled various teams on different ESG components.

Gaining a competitive edge with a robust ESG operating model

The project has given our client a clear and phased approach to ESG, minimising ambiguity and aligning leadership and teams on key priorities. With a roadmap in place, management can now allocate resources effectively, prioritise activities, and integrate ESG into their business strategy.

This proactive stance allows them to stay ahead of mandatory climate disclosures and the evolving ESG landscape. They are now well-prepared for regulations such as AASB S2, ISSB, or jurisdiction-specific requirements, reducing potential greenwashing risks.

A transparent and structured ESG approach instils confidence in investors, lenders, and regulators. Additionally, a robust ESG strategy differentiates them in the market, making them more appealing to sustainability-conscious customers, employees, and partners.

Find out how we help our clients in Climate Change and Sustainability