With the importance and value of environmental, social, and governance (ESG) reporting coming more to the fore, the consideration of using sustainability reporting software is shifting from “whether” to “which.” Unlike in the last about two decades when ESG sustainability reporting was largely voluntary, the regulatory landscape is now making it mandatory. The EU is leading the pack with its ambitious Taxonomy and greenhouse gas (GHG) laws, which target cutting 55% emissions by 2030.
Individual countries, stock markets like HKEX and LSE, institutions, investors, and customers also demand sustainable company operations that must be accompanied by accurate, reliable, and verifiable reports.
This is where software for sustainability reporting comes into play, but selecting the perfect option for your company is never easy. In this post, we take a closer look at ESG sustainability reporting programs to help you not only pick the perfect app but use it correctly for better results.
A Brief about Sustainability Reporting
Sustainability reporting is a comprehensive overview and disclosure of a business’s environmental, social, and governance (ESG) impacts that result from daily operations. It highlights a company’s commitment to identifying impact from its operations and supporting a sustainable global economy. Recently, the need for ESG sustainability reporting has become part of the annual integrated company reporting that pools together both financial and non-financial parameters.
The environmental, social, and governance (ESG) reporting must be a conscious process, meaning that your organization has to start by setting clear sustainability goals and reflecting on how to achieve them. For example, if you indicate that your company / organization reduced carbon footprint by 30%, this number must be verifiable using the right data.
Sustainability software allows you to stick to the right ESG sustainability reporting process and craft high-quality reports.
Some of the advantages of ESG sustainability reporting include a stronger attachment to stakeholders, a better understanding of company’s management challenges, and improved efficiency. It is also useful for better decision making, building stakeholder trust, and as a risk management tool. Good ESG data analysis can help you learn about the current performance needs and craft ways to manage different components for better results.
How Do You Choose the Best Sustainability Software?
Here are some of the attributes and features to check when selecting a sustainability reporting application/ program.
Ensure the Software Comes with Access Rights Restriction for Users
The process of ESG sustainability reporting involves dealing with different parameters and departments. The production department in your organization might have information energy use and greenhouse gasses (GHG) emission rates, while the HR unit data on data on staff diversity. The sustainability software that you select should allow the authorized personnel to securely enter data on key performance indicators (KPI).
For a company with a complex structure, such as branches in different cities or countries, the sustainability software of choice should make it possible for the reporting staff to view and follow the process in line with the selected ESG framework.
To make this safe and coordination reliable, the sustainability software should have the following features:
- Streamlined reporting capability from a centralized database.
- Uses standardized units and terminology.
- Comes with built-in workflows and notifications.
Only Go for the App with Tools for Reporting to Multiple Regulatory Agencies
When running a company, the chances are that it reports to multiple agencies or authorities. For example, a company operating in Hong Kong might be required to report to HKEX, IRD, and GRI, among other agencies. So, the app / software of choice should make it easy for you to complete the process and submit the report to different agencies. With this capability, you are sure of avoiding separate calculations.
Key features to check in the software for sustainability that can allow reporting to multiple agencies:
- Ability to enter once and report 10X.
- Check support for company-specific needs.
- Should come with export formats.
Pick the Program with Advanced Notification
For your sustainability reporting journey to be complete, you need to follow different parameters' performance to establish if targeted results are achieved. For example, if you target to cut down emissions by a specific rate in 12 months, follow the performance over the short-term to determine the progress.
The best platform/ software for sustainability reporting should come with notification tools to know when set targets are reached or missed.
If you notice that a specific pre-set target is not being achieved, this might be a signal that change is needed. Good options include multi-purpose notifications that signal you when a specific step is completed. Also, it should have actionable notifications that create and send prompts for specific actions.
These are only a few of the features that you should look for when selecting software for sustainability for your companies. In addition, you should ensure that the app comes with professional support, an intuitive interface, and a guarantee for data security. Diginex.com has cut a name for offering high-quality software for all companies, and you can also count on us for expert advice on ESG reporting.
Visit Diginex.com now and let an expert hold your hand for a more successful EHS or ESG sustainability journey.