Once you have defined your ESG priorities, are clear that your goals and the reporting frameworks relevant to your business have been identified, the real challenge begins – showcasing the data that highlights all your good work and progress. As data collection and management experts, we have a few tips for the next steps of your data journey.
The processes around Environment, Social and Governance (ESG) reporting can be complex and challenging but being able to demonstrate your organisation's commitment to environmental, social, and governance issues, as well as meet regulatory and financial reporting requirements is an increasingly important part of doing business.
There are several ESG reporting frameworks and standards that organisations can use to guide their ESG reporting. Some of the most popular frameworks include:
- The Global Reporting Initiative (GRI)
- The Sustainability Accounting Standards Board (SASB)
- The Carbon Disclosure Project (CDP)
- The Task Force on Climate-related Financial Disclosures (TCFD)
Businesses need to identify the frameworks and standards that are most relevant to their business and geography while also ensuring that the data they collect is aligned with these frameworks and standards.
Once you have defined your ESG priorities, are clear that your goals and the reporting frameworks relevant to your business have been identified, the real challenge begins – showcasing the data that highlights all your good work and progress. As data collection and management experts, we have a few tips for the next steps of your data journey.
Develop a comprehensive data collection strategy.
This strategy should outline what data you need, how you will collect it, and who will be responsible for the process. You should also consider how often you will need to update your data, and how you will ensure its accuracy and reliability.
Establish clear data governance policies.
Data governance policies are essential for ensuring the accuracy and reliability of the data that is collected for ESG reporting. Businesses must establish clear policies and procedures for collecting, storing, and analysing ESG data. These policies should also outline how the data will be reviewed and verified, and who will be responsible for these tasks.
Leverage technology to streamline data collection and analysis.
Technology can play a critical role in streamlining the data collection and analysis process. Organisations often start by manually collating data from multiple sources but should consider investigating ESG reporting software that can automate data collection, streamline analysis, and produce reports that are aligned with the relevant ESG reporting frameworks and standards. These tools can also help identify data gaps and inconsistencies, and provide alerts when data needs to be updated or verified.
Engage with stakeholders.
ESG reporting is not just about collecting data; it's also about engaging with stakeholders - investors, customers, employees, and communities - understanding their priorities and concerns and communicating your organisation's ESG performance. This process could also help to identify new ESG priorities and areas for improvement.
Monitor and report progress.
Finally, it’s vital that businesses regularly monitor and report progress against their organisation's ESG goals and targets. The results should be reported to stakeholders in a transparent and meaningful way. By tracking progress and reporting results, organisations can demonstrate their commitment to ESG issues and build trust with stakeholders.
In conclusion, businesses need to:
- Understand their organisation's ESG priorities and goals
- Identify and select the most appropriate reporting frameworks and standards
- Develop a comprehensive data collection strategy
- Establish clear data governance policies
- Leverage technology to streamline data collection and analysis
- Engage with stakeholders
- Monitor and report progress.
ADEC Arise’s Data Assured service can help guide you through the process of ESG reporting - our unique ‘Plan, Acquire, Manage, Report, and Deliver’ approach makes use of cutting-edge automation, with a ‘human in the loop’ to ensure exceptions are managed with accuracy and efficiency.
To explore this in more detail, our colleagues at ADEC Innovations, our parent company, have published a 'An Outsourcing Professional's Guide to Social Sustainability in ESG alongside impact experts at Global CEO Alliance and ESG Adviser Alistair Niederer. You can download the guide here.
Find out more here or get in touch to find out how we can help you deliver efficient and effective data reporting to meet your ESG requirements.
