Strategy

2 Points

The Strategy aspect assesses whether the entity integrates sustainability into its overall business strategy and decision-making processes. Strategic integration supports a forward-looking approach to managing risks and opportunities, helping to drive long-term value creation and resilience.

ST0: Strategy Context

Maximum Points

Not scored

Static

Validation

Evidence not required

Control dependent?

Is there context that an investor or similar stakeholder needs to understand the entity’s response to the Strategy indicators?

Assessment Instructions

Intent: What is the purpose of this indicator?

This indicator provides the entity with the opportunity to disclose additional context to support the interpretation of its responses to the Strategy indicators, helping stakeholders better understand the entity’s strategic approach and circumstances.

Input: How do I complete this indicator?

Select ‘Yes’ or ‘No’. If ‘Yes’, provide context to support the interpretation of the entity’s responses to this aspect’s indicators.

Open text box: The content of this open text box is not used for scoring, but will be included in the Insights and Benchmark Reports. Participants should use this open text box to provide further details, context, or comments related to the subject.

Terminology

Strategy

To define and clearly communicate a target, direction, or program (internally at minimum), while also preparing and implementing the actions required to achieve it.

Sustainability strategy

Strategy which (1) sets out the participant’s procedures and (2) sets the direction and guidance for the entity’s implementation of sustainability measures.

Validation: What evidence is required?

No evidence required

Scoring

This indicator is not scored.

ST1: Sustainability in Business Strategy

Maximum Points

2 Points

Static

Validation

Evidence and other answer are manually validated

Control dependent?

Does the entity incorporate sustainability in its overall business strategy?

$[SCORING KEY] A "scoring weight" is the fraction of the indicator's maximum score that a selection contributes (a multiplier, not a fixed point value). "[validated]" means the selection is subject to validation outputs. INPUT TYPES: groups are labelled (radio — select exactly one; options are mutually exclusive) or (checkbox — select all that apply); radio options are alternatives (not additive), checkbox options add together. CAPPING: total scoring is capped at the indicator's maximum (1/1); selecting options whose combined weight exceeds 1/1 does not award more than the maximum, and a group's contribution is capped at its own weight. ST1 | Sustainability in Business Strategy Gate: Yes / No. If Yes, select the elements into which sustainability has been integrated (checkbox — select all that apply); all selections [validated]: - Goal setting: 1/8 scoring weight [validated] - Risk management: 1/8 scoring weight [validated] - Regulatory compliance: 1/8 scoring weight [validated] - Operating budget: 1/8 scoring weight [validated] - Capital planning: 1/8 scoring weight [validated] - Research and development: 1/8 scoring weight [validated] - Partnerships: 1/8 scoring weight [validated] - Marketing and communications: 1/8 scoring weight [validated] - Acquisitions / Divestitures: 1/8 scoring weight [validated] - Other: 1/8 scoring weight [validated] - No: 0 scoring weight$

Assessment Instructions

Intent: What is the purpose of this indicator?

This indicator assesses whether the entity incorporates sustainability into its overall business strategy, including integration across key strategic and operational elements (e.g., goal setting, risk management, operating budget, capital planning, partnerships, etc). Embedding sustainability in these areas supports timely and consistent decision-making and helps manage risks and capture opportunities in line with the entity’s long-term objectives.

Input: How do I complete this indicator?

Select ‘Yes’ or ‘No’. If 'Yes', select all applicable sub-options.

Other: State the other elements into which sustainability has been integrated. Ensure that the other answer provided is not a duplicate of the selected option above.

Terminology

Acquisitions / Divestitures

The integration of sustainability considerations into asset-level acquisition and disposal decisions, including the evaluation of environmental and social factors (e.g., energy, climate risks, and operational efficiency) to inform due diligence and asset strategy.

Capital Planning

The integration of sustainability considerations into capital allocation and investment decisions, including the evaluation and prioritization of projects based on sustainability factors.

Marketing and communications

The integration of sustainability considerations into external communications, ensuring alignment between sustainability commitments, performance, and messaging.

Operation Budget

The allocation of financial resources within operational budgets to support sustainability initiatives, activities, or ongoing performance management. Dedicated full-time equivalents (FTEs) may also be accepted as a proxy for operational resource allocation.

Partnerships

The incorporation of sustainability considerations into collaborations with external stakeholders, including suppliers, clients, or industry partners, to achieve sustainability objectives.

Regulatory compliance

The incorporation of sustainability-related laws, regulations, and standards into business processes and decision-making to ensure compliance and manage regulatory risk.

Research and development

The integration of sustainability considerations into the design and prioritization of innovation and development activities.

Risk Management

The understanding and mitigation of material sustainability risks and opportunities.

Strategy Goal Setting

The establishment of sustainability goals informed by material environmental, social, and governance related issues, risk assessments, or performance data, aimed at improving specific sustainability factors and/or overall operational performance.

Validation: What evidence is required?

Evidence

The evidence provided will be subject to manual validation.

The provided evidence must cover the following elements:

Clearly demonstrate strategies on all selected issues.
- Explicitly address the sustainability aspect of each selected strategy.
- Demonstrate that sustainability is incorporated into the entity’s broader business strategy, rather than being addressed only through a standalone ESG policy or isolated initiative.