Designing a risk intelligence methodology for ESG evaluation

We are responding to the need for improved standards of ESG assessment by designing an assessment methodology enriched with risk intelligence tools. Following this, we will prepare a new approach to ESG strategy for SMEs to provide actionable guidance on the methodology’s application. 

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Czech business stakeholders have highlighted that ESG reporting takes a “one fits all” approach. A key issue here is the emphasis on aggregate marking over complex, qualitative evaluation. The results are superficial and reveal little about the standards of individual ESG categories, relevant issues, and their localisation. Nor is this information required for a high score. As a result, Czech businesses lack the incentive to actively problematise and incorporate ESG factors into their business cultures, limiting the potential for change and exposing businesses to ESG-related risks. We propose to address these gaps by introducing a comprehensive risk intelligence approach to ESG assessment. Risk intelligence methods enable localised and comprehensive analysis. Incorporating them into the process of ESG assessment will connect the indicators to the practices, creating grounds for tangible improvement. The more comprehensive findings will also serve for due diligence and risk analyses, further incorporating ESG matters into everyday business practices.

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The scope of the project includes two study visits to Norway and the Czech Republic respectively, followed by the design of the ESG assessment methodology and the strategic action plan for SMEs.

Prios Kompetanse AS (Prios) is a nationally recognised centre for adult education and lifelong learning. Their main tasks are project management, business consulting and development, innovation processes, training, and software development. Consulting activities mainly support Prios’ clients with internal innovation processes, economic advice, ESG management, green innovations, circular economic development, and management improvements. As a research centre, Prios aims to implement the idea of lifelong learning and constantly updating training contents and methods in response to the ongoing digitalisation and developments of the business sector. All of Prios’ activities are directly supported by the company’s software department, which develops bespoke solutions for each project. 

 

During this project, Prios will provide insights into Norwegian best practices in ESG evaluation and management by sharing their own experiences and facilitating consultations with Norwegian ESG leaders from the consultancy, banking, energy, and governance sectors.