The corporate world is seen as a steady presence from the outside. However, the truth is it must continually change as the opinions of consumers and society fluctuate. One such alteration taking place now is the push towards greater sustainability and social responsibility. From diminishing our impact on the environment to making our home a more just and healthier place to live, we must all do our part. This belief is at the heart of environmental, social and governance (ESG) investing.
How might a company track such investing and better meet sustainability-minded goals? One growing approach is to utilize ESG reporting software. Below, we’ll go over what ESG software is and a few of the key features that support its ability to create more sustainable operations, no matter the industry.
More About ESG and ESG Reporting Software
As ESG investing has grown, it has become more clearly defined. Today, it essentially refers to a set of standards used by socially conscious investors to gauge a company’s worthiness or potential as an investment. These standards are met through a range of ESG initiatives or company behaviors. Of course, such initiatives and end goals vary from business to business.
In terms of meeting investor criteria, companies must consider how they are to address environmental issues, like climate change, as well as social and governance matters. Such social issues may pertain to how relationships within the company are handled in addition to those with customers and the community. For governance, meeting modern standards could involve redefining shareholder rights, examining executive pay or performing stricter audits. In the end, deciding which endeavors to pursue depends on the industry, company structure and numerous other factors.
With so much variability, how might ESG initiatives be tracked? That’s where ESG reporting software comes into play. These advanced programs offer companies of all sizes a streamlined approach to both tracking and reporting their progress. Put simply, the technology is used to monitor operations data in relation to the environmental, social and governance aspects of the business. Then, investors weigh the findings and the company’s overall ability to meet ESG benchmarks into their decision to invest or not.
Key Features of ESG Reporting Software
Not all ESG reporting software offers the same results. To perform optimally, the programming should be equipped with customizable reporting frameworks. That way, it could be tailored to fit the specific operations and needs of the business. Along the same lines is compatibility. The right ESG reporting software should have advanced data integration capabilities to unify with the system and perform without causing interruption to existing programs.
Other highly desirable features of ESG reporting software include team-wide collaboration functions, real-time data visualization and personalized performance tracking tools. When these high-tech features come together, a company is offered a wide range of benefits. Such advantages will become crucial as ESG reporting becomes more and more prevalent throughout the corporate world and beyond.