How ESG Reporting Software Can Help Companies Meet Sustainability Goals
Today, businesses are tasked with meeting a wide range of goals aimed at bettering the world around us. These are referred to as environmental, social and governmental (ESG) initiatives and compliance is mandatory. Accomplishing them calls for a thorough understanding as well as the right technology.
One such technological advancement to help get the job done is ESG reporting software. What is ESG reporting? Essentially, it is the disclosure of environmental, social and corporate governance data. The goal of ESG reporting is to communicate progress made on a company’s ESG activities and encourage transparency for investors.
Providing the necessary tools for all types of businesses, this software can be instrumental in taking a proactive approach to ESG reporting and maintaining compliance. How so? Through in-depth collection and analysis, the software evaluates a company’s data regarding diversity, inclusion, corporate social responsibility, sustainability and other such key performance indicators (KPIs) relevant to ESG initiatives.
Detailed reports are then generated using this analyzed data. These reports demonstrate the company’s ability to implement ESG initiatives successfully. This is becoming more and more critical for investors as well as stakeholders, such as board members and shareholders. They’re also beneficial in terms of risk management as the reports could identify areas of risk. With this input, processes may then be implemented to mitigate future ESG hazards.
ESG reporting software offers many constructive features. While features may vary by product, businesses typically can expect support collecting data regarding any progress made toward compliance, as well as monitoring progress for existing strategies. Some software products feature the ability to outline efforts toward new ESG goals, which helps place the company in the best position for success going forward.
Want to learn more about ESG reporting software and how it can help meet corporate sustainability goals? Check out the accompanying resource from DFIN for further information.
Infographic created by DFIN