In 2001, the US formally rejected the Kyoto Protocol, while more than 50% of the countries that had signed the agreement failed to meet their targets. The millennium had just set off on a bad footing, but we could not proceed this way.
Global warming at its peak, loss of species diversity accelerating, wars in every corner of the globe, and human trafficking; the world was at its tipping point. This realization made stakeholders, especially consumers and investors take the duty of changing the world by demanding more responsible business practices through ESG sustainability reporting.
ESG sustainability reporting is the process of reporting a company's sustainability efforts in three key areas; environmental, social, and corporate governance. As a process, the reporting allows businesses to showcase their financial and non-financial efforts to stakeholders and convince them they are responsible companies. To generate the right ESG reports, the most important thing is data. This is why you need to have the right ESG data software for your ESG sustainability reporting process.
ESG Data Software for Better Data Collection and Analysis
The process of ESG sustainability reporting can be lengthy and complex. It starts with the company’s board decision to adopt environmental, social and governance sustainability in its operations and closes with the publishing of the final report for business stakeholders.
This process can run for a long period of time, up to 12 months for some companies or shorter six-month timeframe for others. Collecting, storing, and using this information during this period to create the targeted reports is never easy.
Furthermore, the types of ESG data involved can make the process even more challenging. For standard manufacturing organizations, ESG data might include emission-related details, staff motivation metrics, product-based considerations and weighted impacts on efforts to promote equity in the community. Well, where do you even start? How do you quantify this data? Do you know the science based targets initiative?
Having the right ESG data software allows you to deal with all sorts of data from your firm. The programs are developed with advanced algorithms that make it easy to gather and analyze information correctly. You can customize the software so that the data entered in the system promptly generates graphs and charts that are easy to understand (discover our ESG software)..
This means that stakeholders can compare, for example, the emissions, energy, safety, and health of staff before and after the installation of new machinery.
Instead of taking a lot of time, maybe hours, days, or even months trying to get calculations on business energy use or safety-based considerations, among others, right, your ESG data software will complete that in a few clicks (check our CSR reporting software).
It is that easy. Even if you only have a short time to prepare for that general or board meeting, the program makes it possible for you to generate all the reports about social-based aspects of the business, such as health and safety or environment, among others, for presentation. Let the technology, especially software, work for you.
Track ESG Sustainability Performance of Your Company Easily
Although some company managers and entrepreneurs at first held the view that ESG sustainability reporting was an additional expense, the associated benefits made them later change their views. The most notable of these benefits is that the process makes it easy to learn about the core risks and opportunities associated with a company’s operations.
This implies that your focus will now be directed towards addressing the real challenges in your firm.
With ESG data software, you will be able to appreciate that sustainability is not just about the environment. In addition, the program will make it possible to quantify and track non-financial efforts such as staff training and organizational culture changes. If you are handling the data manually, some of the information is likely to get skipped, implying that the presented report will not be a true reflection of the sustainability status of the firm (hire an ESG consultant).
Use ESG Data Software to Promote Stakeholder Engagement
If you want to achieve more with the ESG report, it is paramount to tailor it to what stakeholders need. This is easier and more effective when working with the right ESG sustainability computer software. After company analysis and materiality assessment, the software you select can help to liaise more effectively with stakeholders, not just at the start of the reporting process but also at different stages.
You can even personalize the communication to learn and create a deeper connection with stakeholders.
When crafting your sustainability report, a good ESG app will help you easily link the results with stakeholders’ demands. Depending on the reporting topics, the software will make it possible to achieve high levels of accountability and transparency. As investors or other stakeholders question reports of other organizations, yours will be getting endorsements because they can easily say, "see, this is what we wanted, and it was achieved."
ESG Data Software Helps in Promoting a Green Global Economy
Although the concept of sustainability is about three decades old, the successful application is only possible upon total internalization by all entities. At the corporate level, acquiring and using ESG data software helps with this internalization by simplifying data analysis and allowing you to make useful performance decisions to grow the company and promote a green economy.
For example, many companies that previously opted out of corporate social responsibility are now committed to it because presenting the efforts to stakeholders can help to strengthen their products and brand.
See: that might be what you need for better performance, win more customers and a stronger brand, translating to higher profits and success.
Other activities that you can get involved in and capture data with the ESG sustainability reporting program include:
- Extending staff medical cover to their dependents.
- Supporting raw material suppliers to shift to green supply chains and eco-products.
- Supporting efforts for social justice both at home and away.
- Contributing towards ESG projects and products that support the less privileged people, such as refugees.
- Promoting the restoration of lost forestlands and regeneration of dwindling global species. Make sure to track progress because this is what stakeholders want to see.
- Shifting to green energy, such as solar or wind, for better environmental, social, and governance (ESG) performance.
As you can see, ESG data software is an important component for any company that targets to put genuine effort into sustainability. The program allows you to integrate the concept of sustainability and ultimately reap the full benefits both in the short-term and long term.
Remember that it does not matter how small or large your firm is; you have a role to play in promoting a sustainable global economy. Call Diginex to learn more about the leading ESG data software and take your company to the next level.