Do you have a new company or project? Have you taken up the role of managing a new company and want to start ESG sustainability reporting? This is the process of redefining your company to ensure it operates more responsibly and committing to help make the world a better place.
ESG reports allow your stakeholders, such as customers and investors, to understand the commitment and efforts directed towards sustainability. For example, investors will be able to identify and put their funds in companies that help to promote a safer, healthier, and happier planet than it is today. However, sustainability reporting is never easy because the process is long and involves a lot of stakeholders.
To be able to follow the process correctly, one of the most important tools is sustainability software. Keep reading as we highlight the importance of having the right app for sustainability management (even in the DeFi ecosystem).
What is ESG Sustainability Reporting?
ESG sustainability reporting is the disclosure of a company’s information in three main areas: social, environmental, and governance. Therefore, it provides stakeholders with a snapshot of how a company’s operations affect the planet. The main value of ESG reporting is that it allows companies to operate more transparently about the risk they face and their effects on the planet.
For stakeholders, the idea of ESG reporting is becoming their primary determinant of who to work with. Take the example of investors. They only want to be associated with companies that are responsible for their operations.
Therefore, your ESG sustainability report helps them figure out the company’s future and the success of their investment.
To be able to produce a sustainability report that will not be labeled greenwashing, you need to follow the right reporting principles. These include materiality, accuracy, and continuity. To achieve all of these, you need to use sustainability reporting software.
Importance of Using ESG Management Software
Sustainability reporting programs are designed to simplify the process of ESG reporting for your company. The software makes it possible for you to look at the process holistically, implying that relating different parameters will be a lot easier.
It also makes it possible to run different calculations so that you can present the right information to stakeholders. Here are other benefits of using ESG reporting software:
● You can automate the data gathering processes.
● The software helps you to cut down the cost of ESG reporting.
● You are able to secure the data gathered for ESG reporting.
● It is possible to follow the reporting topics on both the short and long-term basis.
Features to Look in a New Sustainability Reporting Program
Now that you know the importance of using an ESG reporting app, there is one more thing: “how do you select the best?” There are many programs out there that you can use, but selecting the right one can be pretty confusing. So, here are the main features to check when selecting an ESG sustainability reporting program.
● The app should be compatible with your computers and management system.
● Easy to use by your staff.
● Advanced security to reduce the risk of data theft.
● Scalable. This will help you report on more topics without buying a completely new program.
● Should have responsive and professional support.
● Should have a mobile version that allows you to follow the ESG reporting process even when away from the computer.
● Capable of working with different ESG sustainability reporting frameworks, such as Global Reporting Initiatives (GRI).
This post has demonstrated that ESG sustainability reporting is no longer an option that can be wished away no matter the areas where your firm is based on. But to get it right, as said by Diginex, you need the right environmental sustainability software. The attributes we have outlined above can help you select the best. Visit Diginex.com to talk to experts in ESG reporting and use their top-rated ESG reporting programs.
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