This post is part of an ongoing series exploring the 4 Pillars of ESG Management: Strategy, Data (Part 1), Data (Part 2), Reporting, and Engagement.
Investor-grade data is a crucial element of ESG management. But to be useful, that information must be distilled into analytics and reporting to really have value. Effective and accurate reporting—that’s where ESG insights actually lie. You’ve spent the time and resources to capture and manage data, but what does it all mean? And how accessible are those analytics and insights?
It’s About Progress in Real-time
Gone are the days of relying on disconnected excel documents or static year-end reports to guide strategy and operations. Future-focused organizations know that it’s really about tracking progress with ongoing, real-time reporting to drive successful ESG management. Sustainability managers and stakeholders need access to information on-demand to be best informed when making operational decisions that align with their ESG strategy and goals. And figuring out you didn’t you meet any of your ESG goals at the end of a reporting season? Not very useful.
Embrace Frameworks, Eyes on the ESG Regulation Horizon
Recently, regulations have been passed making ESG reporting mandatory for companies operating in particular industry sectors or countries. While this remains voluntary for many, requirements are likely to change in the not-too-distant future. Ready or not, regulation will affect most organizations soon.
The ESG frameworks, standards, and ranking landscape is vast and often difficult to navigate (stay tuned for a FigBytes overview of the most common frameworks including GRI, TCFD, and more). And although there is a definite need for harmonization, promised standardization is useful. Uniform metrics provide us with a shared ESG language that eases communication and comparison. Benchmarking allows organizations to understand how they’re faring in the industry and identify areas of strength and necessary improvement. If you don’t know how you compare in the market, do you really understand your overall organizational health? Reporting to a framework or standard that is relevant to your industry or implementing a ranking tool like CSRHub can help clarify how your ESG performance stacks up.
Evolve on Your Sustainability Journey
And if you’re not yet reporting to an ESG standard or framework, reporting still matters on an organizational level. What that looks like for a company will vary—remember, keep it relevant, but ESG is not going away.
Beyond the growing pressure for sustainability considerations and transparency from investors, conscious consumers, governments, and other stakeholders, it’s been found that organizations strong on ESG are stronger and more resilient overall. A comprehensive understanding of your ESG progress will help your organization identify opportunities for efficiency and growth while mitigating risk. Are you aligned with your strategy? How are you tracking on established internal KPIs? The time is now to prioritize your ESG management and reporting.
Overwhelmed by the ESG reporting landscape? FigBytes can help. Our comprehensive ESG insights platform automates ESG reporting to frameworks and standards that ensure compliance with mandatory disclosures and alignment with mission critical KPIs.
