Businesses are looking to adopt ESG software, a recent trend in digital transformation, for sustainable operations. What does ESG mean and how is it useful for your business? In this blog, we understand the term and how it can enable enterprises to make environmental and socially responsible business decisions.
According to Gartner, “Environmental, social and governance (ESG) refers to a collection of corporate performance evaluation criteria that assess the robustness of a company’s governance mechanisms and its ability to effectively manage its environmental and social impacts. Examples of ESG data include the quantification of a company’s carbon emissions, water consumption or customer privacy breaches. Institutional investors, stock exchanges and boards increasingly use sustainability and social responsibility disclosure information to explore the relationship between a company’s management of ESG risk factors and its business performance.”
“Global ESG assets may surpass $41 trillion by 2022 and $50 trillion by 2025, one-third of the projected total assets under management globally,” according to Bloomberg Intelligence (BI).
Why Use ESG Software?
Below are few key reasons to adopt ESG software.
1. ESG Software improves accountability and transparency within an organization. Every member of an organization can access data, track progress, and suggest improvements.
2. Reduce environmental impact by monitoring greenhouse gas emissions, waste production, and water usage. Make informed decisions to modify changes in business operations to reduce carbon footprint.
3. Analyze your organization’s social efforts and governance practices regularly to identify areas of improvement. The business activities should exhibit social responsibility towards customers and stakeholders. Corporate social responsibility and regulatory compliances are critical goals for enterprises.
4. Monitor key performance indicators (KPIs) using ESG software to improve overall organizational efficiency.
Few Common ESG Models
Few Common ESG Models
Why Do Businesses Need ESG Software?
Key Benefits of ESG Models
1. To stay ahead of the curve and remain relevant in the market, companies must quickly adapt to changes in technology or regulatory standards.
2. Future industry standards and compliances may require adoption of advanced technologies to reduce carbon footprint, use of renewable energy, and invest in eco-friendly projects.
3. A positive brand image will help enterprises retain employees and increase customer loyalty.
Core Features of ESG Software
Can it identify data anomalies?
Does your ESG reporting deal efficiently with huge volumes of data and glean relevant business insights? The main feature of an ESG reporting software is how to minimize inaccurate data. Identification of data entry errors saves time.
Is the ESG software cloud-based and compatible with any mobile device?
Cloud-based apps are accessible from anywhere and integrate seamlessly across multiple devices. A cloud based ESG software provides ease of accessibility and makes room for effective device management.
Does the ESG software have good UI/UX?
Intuitive and easy to use reporting software comes with an accessible interface and is designed to deliver a smooth experience to end users. Keep in mind the number of iterations the application has passed through, and how its features have been upgraded over time. Also, consider how feedback is received by the company building the reporting software.
What are the analytics and reporting capabilities of the software?
Enterprises must be able to fulfil the demands of its different stakeholders. Focus on analyzing data catering to different set of audiences to achieve maximum business value.
Streamlining business operations
Does your ESG software help automate routine tasks? Few key operations that may be automated include tracking water usage, monitoring carbon footprint, entering KPIs, generating CSR reports, and paper recycling.
Popular ESG Software
Popular ESG Software
a) Enablon – A leading provider of operational risk management, integrated risk management, EHS software and sustainability solutions. This software by Wolters Kluwer helps enterprises become more efficient, sustainable and resilient by leveraging innovative technology. Companies may minimize operational risks, improve profitability, and manage safety practices, environmental performance, compliances, etc.
b) Ecometrica – This reporting software enables enterprises to understand their environmental impact on resources, abide with industry standards/regulatory compliances, and build a future-ready organization. The company’s cutting edge solutions in geospatial data, earth observation, environmental accounting, etc. is useful for sustainability reporting in land use change, supply chain risk, emissions, disaster response etc.
c) GlobeScan collaborates with enterprises to deliver actionable data-driven insights and build strategies towards a sustainable environment.
d) The Sustainability Dashboard is a non-commercial software enabling developing nations achieve the UN goals of sustainable development.
