A Structured Approach to ESG Strategy
Getting started with ESG doesn't require you to have all the answers upfront. The toolkit takes you through a step-by-step approach so you can begin where you are and build knowledge and action progressively over time.
If your journey has already started, take the time to review where you’re at. Whether you are getting your business ready, seeking to understand business impact, or ready to make positive change — this section will guide you through a structured approach to setting your ESG strategy.
Choose Your Maturity Level
The toolkit is structured across four levels. Each level builds on the last — start where your business is right now and progress at your own pace.
Foundation
Getting your business ready. Assumes little to no structures or systems are in place.
Advanced
Formalised reporting of your ESG performance. Systems and fundamentals in place.
Expert
Creating positive change. Innovate, lead and fully integrate ESG across your business.
Six Steps to Setting Up ESG Action
Use these six steps to build your ESG strategy — from setting your vision and engaging your team, to gathering data, identifying risks, setting goals and designing action.
Set Your Ambition
Define your ESG vision and commitment — and understand how they match with your business values and goals.1 This is where you articulate what kind of business you want to be and what ESG means for your operations.
- Write a short ESG vision statement that reflects your values
- Align your ESG ambition with your existing business strategy
- Consider what “doing good” means for your business and community
Establish Your Team
Bring stakeholders — internal and external — on the journey through empowering action, regular communication and inclusion in the review and development of key processes.
- Identify an internal ESG champion or working group
- Communicate your ESG vision to your team and gather input
- Engage suppliers and community partners in your ambitions
Gather Your Data
Set your baseline measurements to understand where to prioritise action across environmental, social and governance areas.1 Good data is the foundation of meaningful ESG reporting and goal-setting.
- Collect energy and water consumption data across your operations
- Track waste volumes and categories going to landfill or recycling
- Record workforce data including diversity, turnover and wellbeing
Assess Your Risk
Understand what is material to your business and how this feeds into your actions and priorities.1 A materiality assessment helps you focus your ESG efforts where they matter most.
- Identify your most significant environmental and social impacts
- Assess governance risks including compliance and ethics exposure
- Prioritise risks by likelihood and potential business impact
Set Your Goals
Know what you want to achieve and by when — setting clear, measurable targets across each pillar.1 Goals give your ESG strategy direction and allow you to track and report on progress over time.
- Set short-term (1 year) and longer-term (3–5 year) targets
- Make goals specific and measurable so progress can be tracked
- Align goals to relevant SDGs or industry benchmarks where possible
Design a Strategy
Use your strategy to develop actions that will direct your resourcing and outcomes across the business.1 A clear strategy ensures your ESG intentions translate into consistent, coordinated action across all three pillars.
- Document your ESG priorities, actions and timelines in a strategy plan
- Allocate appropriate budget and resources to support delivery
- Build in regular review cycles to monitor progress and adapt
Who Should Be Involved in Your ESG Journey?
ESG is a whole-of-business responsibility. Bringing the right people on board early is critical to successful, lasting action.
Business Leadership
Owners and managers set the ESG vision and signal commitment from the top. ESG ambition needs to be embedded in the values and strategy of the business from the outset.
Your Workforce
Staff play a vital role in delivering ESG outcomes day-to-day. Empower your team through communication, training and inclusion in key decisions — and listen to their ideas and concerns.
Suppliers and Partners
Your supply chain and business partners can amplify or undermine your ESG efforts. Engage them early, share your expectations and look for opportunities to collaborate on shared sustainability goals.
Community and Customers
Local communities and visitors are key stakeholders. Understanding their expectations — and communicating your ESG commitments to them — builds trust, loyalty and social licence to operate.
First Nations Peoples
In the Mackay Isaac region, respectful engagement with First Nations communities is integral to social responsibility. This includes cultural awareness, inclusion and genuine partnership.
Investors and Financiers
Banks and investors are increasingly interested in ESG performance. Keeping them informed of your progress can strengthen relationships and support access to green financing and investment.
What Data Should You Be Collecting?
Gathering baseline data across all three ESG pillars is essential to understanding where you are starting from, identifying priorities and measuring progress over time.
| Data Category | Pillar | What to Measure | Why It Matters |
|---|---|---|---|
| Energy consumption | Environmental | kWh used per month across all operations | Identifies efficiency opportunities and forms your Scope 1 and 2 emissions baseline |
| Water use | Environmental | Litres consumed across facilities per guest/visitor | Highlights conservation opportunities and reduces operating costs |
| Waste generation | Environmental | Volume of waste to landfill, recycling and compost | Supports circular economy action and waste reduction goal-setting |
| Carbon emissions | Environmental | Scope 1, 2 and 3 emissions in CO₂ equivalent | Core to climate reporting obligations and net zero commitments |
| Workforce diversity | Social | Gender, age, First Nations representation and pay equity data | Demonstrates commitment to inclusion and fair employment practices |
| Employee wellbeing | Social | Staff satisfaction, turnover rates, health and safety incidents | Supports workforce retention and demonstrates duty of care |
| Community investment | Social | Value of local procurement, sponsorships, volunteer hours | Quantifies your social contribution and strengthens community relationships |
| Governance and compliance | Governance | Policy coverage, compliance incidents, training completion rates | Demonstrates responsible management and reduces legal and reputational risk |
Start simple — even basic data is valuable
You don’t need a sophisticated system to begin. Start by collecting what is readily available — utility bills, payroll records and supplier invoices are all valuable starting points.
Understanding Scope 1, 2 and 3 Emissions
When gathering environmental data, it helps to understand how emissions are categorised. The toolkit provides specialised advice for those involved in, or caught by, Scope 3 reporting requirements.
Direct Emissions
Emissions from sources owned or controlled by your business — such as fuel burned in company vehicles, gas-powered equipment or on-site generators.
Indirect Energy Emissions
Emissions from the generation of purchased electricity, steam, heating or cooling consumed by your business — typically your mains power supply.
Value Chain Emissions
All other indirect emissions in your supply chain — including suppliers, business travel, waste disposal and visitor travel to and from your business.
What does Scope 3 mean for small tourism businesses?
If a larger business partner is subject to mandatory ESG reporting, they may be required to report their Scope 3 emissions — which includes emissions generated by their suppliers (you). The toolkit provides specialised advice for those involved in, or caught by, Scope 3 reporting, offering insights into the information you may need to supply and how to present it.
- Your Scope 1 and 2 emissions data may be requested by supply chain partners
- Some partners may also request information on your waste, water and social practices
- Start collecting this data now so you are prepared when requests arrive
Identifying What Is Most Material to Your Business
A materiality assessment helps you understand which ESG issues are most significant to your business and stakeholders — so you can focus your efforts where they will have the greatest impact.
Climate and Environmental Risk
Extreme weather, reef degradation and natural resource constraints pose significant and growing risks for tourism operators in this region. Assess your exposure and build contingency plans.
Workforce and Culture Risk
Labour shortages, staff turnover, and health and safety obligations are critical risk areas. Strong social practices reduce exposure and improve business resilience.
Regulatory Compliance Risk
Evolving ESG-related legislation — particularly around emissions and workplace standards — requires businesses to stay informed and build governance systems that can adapt.
Supply Chain Risk
Over-reliance on single suppliers, unethical sourcing or partners with poor ESG performance can create operational and reputational risk for your business.
Reputational Risk
Greenwashing, failure to honour cultural commitments and poor community engagement can damage brand reputation and erode customer trust.
Governance and Ethics Risk
Privacy breaches, conflict of interest and inadequate business conduct policies expose your business to legal risk and damage stakeholder confidence.
Setting Short and Long-Term ESG Goals
Clear goals give your ESG strategy direction. Set targets across both short and longer timeframes — and across all three pillars — so progress can be tracked and communicated meaningfully.
Short-Term Goals (0–12 months)
Quick wins and foundational actions that build momentum and establish your ESG baseline. Focus on what you can measure and improve immediately.
- Conduct an energy and water audit across all facilities
- Introduce a staff wellbeing check-in process
- Develop or review your health and safety policy
- Begin tracking waste volumes and categories
- Identify your top three ESG risks and document them
Long-Term Goals (1–5 years)
Strategic goals that drive deeper change and position your business as an ESG leader in the region. These goals should be ambitious but achievable.
- Reduce carbon emissions by a measurable percentage against your baseline
- Achieve recognised sustainability certification
- Source a target percentage of goods and services from local suppliers
- Achieve gender equity in leadership roles across the business
- Publish your first formal ESG performance report
Frequently Asked Questions
I don't know where to start — what should I do first?
Start at the Foundation level and work through Step A: Set Your Ambition. Write down what ESG means for your business and what you value. Then move to Step B by identifying who in your business can help. You don’t need to tackle all three pillars at once — even small, consistent steps build lasting change.
- Write a short ESG vision statement
- Identify one person responsible for driving ESG in the business
- Start collecting energy and water usage data from your utility bills
- Review your existing policies and identify gaps
How do I know which ESG issues are most relevant to my business?
This is what a materiality assessment helps you work out. Consider which ESG issues are most significant to your stakeholders — customers, staff, suppliers and community — and which have the greatest potential impact on your business operations, reputation or finances. The toolkit’s risk assessment guidance (Step D) will walk you through this process.
How do I calculate my carbon footprint?
Start by collecting your Scope 1 and Scope 2 emissions data — your utility bills and fuel receipts are a good starting point. Many free online carbon calculators are available to help convert this into CO₂ equivalent figures. The toolkit provides guidance on what data you may need to supply to partners and how to present it, including for Scope 3 reporting purposes.
How often should I review my ESG strategy?
The toolkit recommends building regular review cycles into your strategy so you can monitor progress and adapt over time. At a minimum, review your goals and data annually. As you move through the maturity levels, your reporting cadence may align with financial reporting cycles or stakeholder expectations — typically annual formal reports with more frequent internal check-ins.
What resources are available to help me get started?
The toolkit includes a glossary to help you build key ESG language and terminology, as well as case studies throughout to illustrate key topics with real examples. It also provides specialised advice for businesses caught in Scope 3 reporting obligations. Additional support may be available through industry associations, local government sustainability programs and the Mackay Isaac Whitsunday visitor economy network.
Ready to put your strategy into practice?
Explore practical implementation across Environmental, Social and Governance pillars.