With ESG and sustainability now creating their own path in the corporate world, there is now a greater emphasis on giving the teams managing ESG the tools to do their job. Those tools are substantially driven by technology, with ESG software now an essential part of almost every ESG and sustainability discussion.
It is obvious why a company should invest in ESG software, but we will delve into some of the most common reasons.
Increased efficiency and accuracy
Technology can help businesses automate many of the tasks involved in ESG management, such as data collection, reporting and compliance. This can lead to significant time and cost savings, as well as increased accuracy. The fewer humans that need to be involved in simple tasks the better. Using the technology as much as possible to do what technology is good at will drive efficiency and reduce payroll costs.
Technology can help businesses make better decisions about ESG risks and opportunities by providing them with access to real-time data and insights. This can help businesses identify and mitigate risks, as well as seize opportunities to improve their ESG performance. With new advanced technologies like AI being introduced into platforms, there is a greater chance that those platforms can be used in decision making or, at the very least, can present alternatives for a human to decide.
Technology can help businesses more effectively communicate their ESG performance to stakeholders. This can help build trust and confidence, as well as attract new customers and investors. ESG includes a large amount of transparency, with data, documents and other key information being shared with third parties as well as internally. Using a technology solution to disseminate data through various formats simply makes sense.
Technology can help businesses reduce their exposure to ESG risks. This can be achieved by helping businesses identify and mitigate risks, as well as comply with ESG regulations. Using technology to bring in data and help risk rate that data adds enormous efficiency to risk management.
Increased quality and competitiveness
Businesses that can effectively manage their ESG programmes are likely to gain a competitive advantage over those that do not, because ESG is becoming increasingly important to stakeholders such as customers, investors and employees. The companies that get on top of this by automating some of the simpler matters in a platform can focus on higher-value areas.
Overall, there are many benefits to using technology to manage ESG programmes. These benefits can help businesses improve their efficiency, decision-making, transparency and risk management. As ESG becomes increasingly important to stakeholders, businesses that can effectively manage their ESG programmes are likely to gain a competitive advantage.
Importantly, the use of technology to automate parts of ESG will save money in headcount costs and allow the resources that are part of the ESG initiatives to focus on higher-value issues and risk management. ESG software can save money and produce better and more efficient management of ESG issues.
Here are some specific examples of how technology can be used to manage ESG programmes.
Data collection and analysis
Technology can be used to collect and analyse data on a variety of ESG metrics, such as energy consumption, water usage, waste production and greenhouse gas emissions. This data can then be used to track progress towards ESG goals, identify areas for improvement and make informed decisions about ESG management. The data collection could be in the form of surveys, questionnaires and disclosures, which gather data from stakeholders within the platform.
Reporting and compliance
Technology can be used to automate the reporting and compliance process for ESG programmes. This can save businesses time and money and help ensure that they are meeting their ESG reporting obligations. As more and more reporting obligations get introduced, it is vital to have a solution that can take data that is centralised and produce reports in different formats according to different standards and the requirements of different countries and regulators.
Communication and engagement
Technology can be used to communicate and engage with stakeholders about ESG programmes. For example, businesses can use technology to create interactive ESG reports or to host online forums and discussions about ESG issues. Any platform needs to have facilities for communicating with people and providing training (e.g. through an embedded LMS).
A great ESG management platform has the ability to receive reports of potential issues, feedback and misconduct, as well as perform triage and support investigations.
The use of technology to manage ESG programmes is still in its early stages, but it is rapidly growing. As the importance of ESG continues to grow, businesses that can effectively use technology to manage their ESG programmes will have a competitive advantage. Speeki has software that does this, providing a great asset to any company looking to save money on ESG and automate many of the obligations.