
Technology Consultancy & Development Agency
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National Grid ESG Sustainability Tool

Project Specification
National Grid, a leading energy infrastructure company, sought a robust solution to measure and evaluate the Environmental, Social, and Governance (ESG) maturity of their suppliers. The project’s aim was to develop a sustainability assessment tool that aligns with the Chartered Governance Institute for the UK and Ireland’s ESG framework. This tool would enable National Grid to:
1. Assess the ESG maturity of current and potential suppliers.
2. Identify gaps in supplier practices relative to industry best practices.
3. Encourage suppliers to adopt more sustainable practices and align with National Grid’s sustainability goals.
4. Generate actionable insights for decision-making and reporting.
The key challenges included:
1. Ensuring alignment with the Chartered Governance Institute’s detailed ESG framework.
2. Creating a scalable and user-friendly tool for suppliers of varying sizes and sectors.
3. Delivering actionable results while maintaining transparency and confidentiality.
The solution involved designing and implementing a digital Sustainability Assessment Tool. The tool’s features included:
Customisable Surveys: Suppliers completed detailed surveys based on the ESG framework. The survey captured critical data points, such as environmental impact, social responsibility initiatives, governance practices, and alignment with industry regulations.
Automated Scoring System: The tool incorporated a weighted scoring mechanism aligned with the Chartered Governance Institute’s ESG metrics. Each supplier received an ESG maturity score across three pillars: Environmental, Social, and Governance.
Data Visualisation: A dashboard provided visual insights into supplier performance, showing trends, benchmarks, and gap analyses.
Recommendations Engine: Based on the scoring, the tool provided tailored recommendations for suppliers to improve their ESG practices.
Integration and Accessibility: The tool was designed to integrate seamlessly with National Grid’s existing procurement systems and ensured secure, role-based access for internal and external stakeholders.
Project Outcome
The implementation of the Sustainability Assessment Tool delivered measurable benefits:
Enhanced ESG Transparency: National Grid gained a clear understanding of its suppliers’ ESG maturity, enabling informed procurement decisions.
Supplier Engagement and Improvement: The recommendations engine encouraged suppliers to adopt better sustainability practices, fostering stronger partnerships and contributing to broader ESG goals.
Data-Driven Decision-Making: The tool’s data insights helped National Grid prioritise partnerships with high-performing suppliers and work collaboratively with those needing improvement.
Alignment with Regulatory Standards: By leveraging the Chartered Governance Institute’s framework, the tool ensured compliance with industry-leading ESG standards, positioning National Grid as a sustainability leader.
Scalability and Future-Proofing: The flexible design allowed for updates to the framework and metrics, ensuring the tool remained relevant as ESG standards evolved.
“The Sustainability Assessment Tool has been transformative in our procurement process. It not only provides a clear picture of our suppliers’ ESG maturity but also drives meaningful change by encouraging them to align with our sustainability goals. This project underscores National Grid’s commitment to a greener and more responsible future.”
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