Modus Sustainability

Understanding the Value of ESG & its Integration into the Business

At its core, ESG transformation demands that businesses align sustainability goals with their value system & long-term business objectives. Companies need to go beyond regulatory compliance & aim to build sustainable value across their product lifecycle, supply chains, and overall business impact.

Modus provides organizations with the tools to map, understand, and operationalize their ESG strategy, helping them move from a theoretical approach to execution.

Value System Thinking & Business Model Alignment

Modus emphasizes the importance of integrating value system thinking into sustainability. It helps map the product value systems and end-to-end value chain impacts across the entire business, from sourcing raw materials to customer experience and product disposal.

Value Chain & Value System Mapping: The Modus Value Chain Modeler helps organizations visualize their complete product lifecycle. This includes identifying impacts at each touchpoint, such as carbon emissions, plastic usage, or water consumption, creating a detailed impact map.

Business Model Integration: The platform allows ESG goals to be tied to the Target Operating Model (TOM) and business strategies. This ensures ESG isn’t treated as a separate initiative but is embedded into the core business model, aligning with strategic objectives.

Mapping ESG into the Operating Model

To make ESG part of everyday operations, Modus supports businesses in defining and managing operational changes through its Live Operating Model Hub. This hub provides visibility into the 'as-is' and 'to-be' models, identifying necessary changes in systems, processes, data, and roles.

ESG Operating Model: Modus' TOM Hub helps organizations define how ESG goals will affect their operating processes, such as supply chain operations, procurement policies, and waste management. It enables changes to be mapped and delivered through clear cause-and-effect relationships.

Change Impact Management: The Change Management Hub provides out-of-the-box tools and templates for mobilizing and delivering ESG transformation projects. It supports the mapping and scheduling of necessary changes against business capabilities and resources.

Running & Sustaining ESG Program Portfolios

Sustained ESG transformation requires an ability to run, track, and optimize portfolios of change initiatives. Modus' Portfolio Management Hub allows ESG programs to be centrally managed, ensuring they are aligned with overall business transformation efforts.

Portfolio Management for ESG: The platform provides real-time dashboards, reporting, and cross-program assurance, enabling businesses to monitor the progress and impact of ESG initiatives across different projects and functions.

Agile and Programmatic ESG Delivery: Modus supports agile delivery of ESG projects through customizable methodologies, ensuring consistent progress and adaptation to evolving sustainability goals.

Leadership & Capability in Sustainable Thinking

The importance of leadership in driving ESG cannot be understated. Modus provides the necessary tools to develop leadership and organization-wide capabilities for sustainable thinking.

‍Organizational Change Management : Through the OCM Hub, Modus supports leadership teams in embedding ESG practices across the organization, ensuring that the workforce is equipped with the necessary knowledge, skills, and behaviors for a sustainable transformation.

Virtual Academy for ESG Skills: Modus offers training and development programs through its Virtual Academy and Skill Mapping Algorithms, ensuring employees at all levels are continuously developing capabilities that support sustainable business operations.

Modus AI Unlocking ESG Insights

Modus' AI-powered capabilities play a pivotal role in automating, analyzing, and simulating ESG strategies for more informed decision-making.

AI & ESG Roadmaps: Modus’ AI Transformation Intelligence Engine allows organizations to simulate various ESG scenarios, providing a data-driven approach to 'what-if' analyses on environmental impacts and business outcomes.

Skill Mapping for ESG Teams: With AI-driven Skill Mapping, organizations can identify resource needs for cross-functional ESG teams, ensuring the right talent is in place to support ongoing ESG goals.

Embedding ESG as Sustainable Business Practice

Finally, Modus helps organizations embed ESG transformation as a continuous and sustainable practice. By centralizing ESG capabilities within the Transformation as Usual (TAU) model, businesses can ensure ESG efforts are continuously monitored, optimized, and integrated into daily operations.

Transformation as Usual: The Transformation Management Office (TMO) in Modus ensures that ESG transformation becomes an ongoing capability, with robust governance, optimization cycles, and continuous learning.

SUSTAINABILITY areas

How Modus unlocks other areas of Sustainable thinking

Corporate Social Responsibility (CSR)

Focus: Ethical business practices, philanthropy, environmental sustainability.

Modus Modules: Modus Green helps align CSR goals to business strategies and operations through the Live Operating Model, ensuring CSR is part of core business.

Modus AI: AI-driven reporting dashboards track the impact of CSR initiatives, providing real-time insights into performance and compliance.

Modus View (How all combine): Modus integrates CSR into a centralized platform, helping to track, monitor, and report CSR performance alongside operational objectives.

Sustainable Development Goals (SDGs)

Focus: Global goals on poverty, education, health, environment, etc.

Modus Modules: Modus Value Chain Modeler links SDGs to company’s operating model & business strategy, ensuring alignment across initiatives.

Modus AI: AI simulations model the impact of changes and align SDG objectives with business KPIs.

Modus View (How all combine): Modus centralizes SDG-driven transformations, ensuring each goal is reflected in strategic planning and real-time performance dashboards.

Net-Zero Commitments

Focus: Carbon emissions reduction, energy efficiency, carbon offsets.

Modus Modules: Modus Green integrates net-zero goals into the TOM Hub, ensuring sustainability initiatives affect supply chains, manufacturing, and logistics.

Modus AI: AI-based carbon footprint analysis helps simulate scenarios, track carbon outputs, and propose optimizations.

Modus View (How all combine): Modus combines live data, AI insights, and operational changes, creating a roadmap for achieving & monitoring net-zero goals across operations.

Circular Economy

Focus: Product lifecycle, waste reduction, recycling, and reuse.

Modus Modules: Modus Value Chain & Operating Model Hubs track product lifecycles, ensuring sustainable sourcing, reuse, & closed-loop processes.

Modus AI: AI-driven process automation ensures minimal waste and optimized resource use, predicting reuse opportunities.

Modus View (How all combine): Modus enables closed-loop processes within the supply chain, ensuring waste reduction and process improvements based on AI-led feedback loops.

Biodiversity & Nature-Based Solutions

Focus: Ecosystem protection, regenerative practices.

Modus Modules: Modus Sustainability Hub aligns nature-based solutions with company’s operational strategy, using the TOM Hub to plan for ecosystem impacts.

Modus AI: AI simulations model environmental impacts of projects & help plan regenerative activities like reforestation.

Modus View (How all combine): Modus ensures nature-based projects are tracked & linked to strategic goals, with AI predicting ecosystem benefits & guiding operational shifts.

Social Impact & Human Rights

Focus: Fair labor, diversity, inclusion, ethical supply chains.

Modus Modules: Modus Organizational Change Hub integrates social policies into operations, ensuring alignment with human rights standards.

Modus AI: AI-driven compliance monitoring for labor laws, diversity tracking, and ethical sourcing across supply chains.

Modus View (How all combine): Modus provides a real-time view of social impact, linking it with governance models, ensuring organizations comply and adapt to social initiatives.

Climate Resilience & Adaptation

Focus: Risk management, infrastructure resilience, disaster planning.

Modus Modules: Modus Risk & Resilience Hub embeds climate resilience strategies into business models, ensuring preparedness for climate events.

Modus AI: AI-driven risk simulations predict climate impacts and provide real-time monitoring for response optimization.

Modus View (How all combine): Modus supports climate resilience by embedding AI-driven insights into resilience strategies, making climate preparedness part of daily operations.

Renewable Energy Transition

Focus: Shift from fossil fuels to renewable energy sources.

Modus Modules: Modus Green links renewable energy goals to operational activities, monitoring energy use through the Live Operating Model.

Modus AI: AI-driven energy analysis tracks energy consumption, efficiency, and proposes renewable energy optimizations.

Modus View (How all combine): Modus aligns energy consumption data with the TOM, ensuring renewable energy targets are achieved through real-time monitoring and AI insights.

Sustainable Finance & Green Bonds

Focus: Investments in environmentally-friendly projects.

Modus Modules: Modus Portfolio Management Hub manages green bond projects, aligning financial investments with sustainable goals.

Modus AI: AI analyses investment impacts on Sustainability & Financial outcomes, tracking bond performance.

Modus View (How all combine): Modus manages and optimizes sustainable finance projects, providing insights into the financial and environmental impacts of green bond initiatives.

#10

Product Stewardship

Focus: Full lifecycle responsibility for products, recycling, reducing hazardous materials.

Modus Modules: Modus Value Chain Modeler integrates stewardship principles, ensuring product design supports recycling, minimal waste, and sustainability.

Modus AI: AI tracks product lifecycle, identifying areas for improvement, waste reduction, and reuse potential.

Modus View (How all combine): Modus ensures product stewardship is built into the entire value chain, using AI to optimize lifecycle management and minimize environmental harm.

#11

Sustainable Supply Chain Management

Focus: Ethical sourcing, reduced emissions, traceability, fair labor practices.

Modus Modules: Modus Supply Chain Hub links supply chain performance with sustainability metrics, ensuring traceability and lower carbon footprints.

Modus AI: AI-driven supply chain optimization tracks compliance, ethical sourcing, and emission reduction throughout the supply chain.

Modus View (How all combine): Modus provides end-to-end visibility into the supply chain, ensuring every aspect is aligned with sustainability goals and AI-enhanced traceability.

#12

Water Stewardship

Focus: Water use reduction, recycling, conservation.

Modus Modules: Modus Environmental Hub helps organizations track water usage and optimize water-related processes across operations.

Modus AI: AI-driven water monitoring provides real-time insights and models water usage efficiency across facilities.

Modus View (How all combine): Modus helps embed water stewardship goals into operational processes, ensuring sustainable water use practices are implemented and tracked in real-time.

#13

Ethical Consumerism

Focus: Consumer-driven demand for ethical, sustainable products.

Modus Modules: Modus Customer Experience Hub integrates ethical product choices into business strategy, focusing on sustainability in product design and sourcing.

Modus AI: AI-driven consumer insights track buying behavior, providing real-time feedback on ethical consumer trends.

Modus View (How all combine): Modus links consumer preferences with supply chain decisions, enabling companies to respond to the rise in ethical consumerism with sustainable options.