Increased digitalization has led to numerous significant developments across the environmental, social, and governance landscape. Companies, in particular, are taking advantage of technology to maximize ESG strategies, drive growth performance, and ultimately, improve their role in society.
As digitalization and technology become more vital in achieving a more sustainable economy, organizations aim to expand their environmental and social responsibility and adopt better governance practices through ESG reporting.
This topic is explored in the recent webinar hosted by Convene, Breaking Barriers to Sustainability Reporting: How Digitalization can Help in Sustainability Reporting. Experts discussed the role digitalization plays in ESG reporting and how companies can pick the best software to utilize.
The Role of Digitalization in ESG Reporting
The increasing public pressure to become sustainable is evidently pushing companies to take a more active role in the so-called next corporate transformation — ESG.
Atty. Angelo Valencia, Nickel Asia Corporation’s Independent Director and Sustainability Board Committee Member, shared how digitalization can help companies in ESG reporting, particularly with the challenges.
ESG reports require a massive volume of relevant data, which can easily be populated in the disclosure using the right technology. Atty. Valencia reminded companies to incorporate digitalization efforts into their ESG reporting. Doing so can ensure the expected data are pulled and reported, especially with the standards becoming more dreadful.
Atty. Valencia also summarized the ideal ESG journey companies can use as a head start, given the growing standards and scrutiny:
Atty. Valencia reminded, “Each corporation has a different journey, but just keep on pushing. Sustainability itself is a long process. It’s not a sprint, it’s a marathon.”
Putting emphasis on the last step, go digital, Atty. Valencia stressed that a manual ESG report is prone to errors and mistakes — there must be a system to collect all the data, align with the reporting standards, and track previous data and activities.
“Find a platform that can help you, whether it’s attuned with GRI, SASB, or Task Force on Climate-Related Financial Disclosures, because digital is the way. With this, there is traceability, a system, and a process that will make your job easier and lessen the frustration of providing a strategic vision for the company.”
How to Choose the Right ESG Reporting Software
Collecting high volumes of high-quality data can be daunting without digitalization. Shih Hor Lau, CEO of Elixir Technology Pte Ltd, discussed why using a spreadsheet is not the most optimal way to do ESG reporting.
“Using spreadsheets means you have to keep reminding people to submit their ESG data, guide the new person on what to input, and do a last-minute hunt for all missing information. It’s a once-a-year nightmare.”
Shih Hor shared the four pain points of the manual ESG process companies should take into account:
- Yearly scrambling for missing data at the last minute
- Uncertainty in data correctness
- Limited visibility of trend or benchmarking
- Nightmare repeats with every change in disclosure requirements
To facilitate a quality disclosure, Shih Hor advised companies to consider the key imperatives of ESG digitalization: automate data and workflow, validate the information, mitigate to know if you’re meeting the goal, and navigate by adapting to changes in reporting and goal.
To make all these happen, Shih Hor suggested choosing the right software that can help companies produce compelling, accurate, and complete ESG reports. Below are the top technical aspects to consider:
- Flexible data handling — It should be able to provide all the support you need, particularly in gathering the required data, and be flexible enough for any internal or external changes.
- Data collection and automation — Look for software that offers multi-level data entry and verification, as well as auto-collation and metrics calculation.
- Data mapping and configuration — It should have the ability to map multiple disclosures and handle changes across different versions.
- Data traceability and auditability — Does it provide a way to trace data? Opt for software that allows you to monitor who enters what and support evidence collection too.
- Data visualization and presentation — It should provide customizable dashboards and configurable reports, which enable you to better visualize the data.
- Data interoperability — You must be able to extract or interface with other ESG portals, may it be global rating agencies or local ones. It should also allow for benchmarking and comparison.
Convene ESG: The ESG Reporting Software that Ticks All the Boxes
From flexible data handling down to data interoperability, Convene ESG does it all. It is equipped with customizable performance dashboards that deliver better visualization of your organization’s data that you can instantly compare with your peers through Convene ESG’s Peer Benchmarking feature.
For easier collaboration, Convene ESG also offers a Collaboration Settings functionality that allows you and your team to expedite data collection tasks. Pick an ESG pillar, define the frequency and collaborators, then send reminders before the deadline! Want to know more about Convene ESG? Book a consultation with us now!
