As climate change intensifies and the environment suffers from human pollution, we all must do what we can to live more sustainably. That includes how we go about work as well. Companies large and small need to step up and make eco-friendliness a top priority if we’re going to slow down the current level of destruction. From reducing carbon footprints to optimizing resource management, developing and meeting corporate sustainability goals is key.

How might these goals be achieved? A promising method is to streamline the process with ESG reporting and the software designed to support it. What is ESG reporting? Standing for “environmental, social, and governance,” ESG reporting is the disclosure of operations data relating to these three areas of concern in a business. 

Gathering and reporting this data helps to form a blueprint for a business to be more transparent, responsible, and sustainable. It does so by encouraging companies to leverage ESG practices in their investment and organizational decision-making and, therefore, improve their ESG ratings. The result is meeting ESG benchmarks and regulations.

When done well, investing in and implementing robust ESG reporting helps an organization become less burdensome on the environment and better for society. Whether by embracing clean energy practices, fostering a more inclusive workplace culture, or establishing responsible supply chain management policies, working towards these initiatives can be very good for business.

Furthermore, gaining higher ESG ratings can make a company more attractive to consumers as well as prospective investors looking for responsible and sustainable investment opportunities. In fact, approximately 90% of studies on the subject revealed a positive relationship between ESG investing and financial performance. High ESG ratings can also strengthen reputation, increase market access, and offer a competitive advantage.

What is ESG Reporting Software

ESG reporting software is used to support tracking, monitoring, and reporting performance. Utilizing technological advancements in real-time data aggregation and analysis, this software not only makes it easier to assess environmental impact, but it also offers insight on how to take effective action and, thus, reduce said impact as well. For instance, environmental software can provide energy monitoring in production and distribution to manage energy usage more effectively, discern any areas for improvement, and put energy-saving strategies into operation.

Put simply, it is the disclosure of operational data in relation to the environmental, social & governance aspects of the business. Reporting this data is important, as 79% of surveyed investors say the company’s ability to meet ESG benchmarks & target factors into their investment decision-making.

Another example of what ESG reporting software is capable of is building energy management optimization. Outmoded facilities can drastically increase carbon emissions and generate high levels of energy waste. With ESG reporting software solutions, lighting, HVAC, water usage, etc., can be monitored, managed, and ultimately improved to reduce the building’s energy consumption. Such advantages offered by integrated ESG reporting software help companies maximize innovation, meet sustainability goals, and positively impact their bottom line. 

Challenges Companies Face without ESG Reporting Software

• Developing a reliable and robust data collection process 
• Recognizing the scope of data that needs to be collected
• Understanding who needs to be involved in the process
• Encountering issues, such as data inaccuracy, competing frameworks, etc.
• Maintaining compliancy with evolving ESG regulations

Key Features of ESG Reporting Software

• Customizable reporting frameworks
• Data integration capabilities
• Data management & analytics reporting
• Streamlined automation, aggregation, and normalization of the data processes
• Performance tracking tools
• Team-wide collaboration functions
• Enabling of real-time data visualizations
• Contributes to improved organizational decision-making

How to integrate ESG Reporting Software for Your Sustainability Goals

1. Assess your ESG reporting needs.
2. Train and educate your team.
3. Implement data collection processes.
4. Monitor the generated analysis and data reports.
5. Review continuously and update processes as needed.
6. Partner with an ESG regulations and software integration expert.

Want to learn more about ESG reporting software? Check out the accompanying resource for further information from Donnelley Financial Solutions, a virtual data room software provider.