The threat of climate change isn’t going anywhere soon. As a result, experts, environmentalists, investors, and consumers are expecting organizations to focus more on corporate social responsibility, corporate governance, the environment, and sustainability.
Companies can answer stakeholders’ questions by releasing the ESG report and showing them just how sustainable the business is. However, this is where things get tricky.
Manually assembling the ESG report is a tedious and time-consuming task. In fact, manually assembling also results in inaccurate data and reports. However, having an esg software tool can help streamline and centralize the reporting process.
Benefits Of ESG Reporting Tool
Till now, the industry was relying on spreadsheets to manage its products. But, that was not an efficient method. It was full of errors and used to take a lot of time to create one report.
When you are creating an ESG report for multiple buildings, using a spreadsheet is more of a hindrance than any help. This is where you will find how useful ESG reporting tools are.
Besides offering efficiency with the work, an ESG tool can help you –
- Automatically gather data from multiple buildings into one place.
- Process and analyze the data and make reports on how your organization measures up to the standard framework.
- Make sure your energy and sustainability data is complete.
What To Look For When Selecting A reporting Solution
Adapting to ESG tools can completely change how companies report ESG performance. Now that you know how this technology can benefit your company, it is time to look into the qualities that an ESG reporting software needs to have.
1. Compliant With The Latest Reporting Standard
The best reporting software should not limit itself to only reporting requirements, but also offer different reporting modules compliant with the latest reporting standard.
With the help of a reporting tool, you can make multiple reports in one place. You just need to add information and all your calculation is done automatically.
In addition, the software you are using needs to be state and federal compliant. Some of the major reporting frameworks include –
- CDSB.
- CDP.
- GRI.
- IIRC.
- SASB.
A reporting tool that supports these standard frameworks can help you save a lot of time and money, which can be used on other important business ventures.
2. Extensive Data Consolidation Capabilities
As we have already mentioned, collecting data is a key part of ESG reporting. Pick a software tool that can help you collect important data, analyze, integrate and verify the authenticity of the data. Ideally speaking, it should guide you in all aspects of decision-making.
Look for an ESG software tool that offers in-depth capabilities. Furthermore, choose software that not only helps you update data automatically but also makes data measurable and accessible.
3. Reliable On Call Vendor Support
Some companies tend to check the vendor behind the ESG reporting software meticulously. If you want to make full use of teh software, you need to ensure that the vendors on the ESG software tool can be completely implemented and optimized as per your need.
In addition, if they can guarantee an annual trend analysis, it will be even better. You get updated with the latest trends in the ESG criteria and continuously improve teh SG reporting feature.
4. Scalability & Report Generation
Every company has its own ocean of data to deal with. That means you can’t just collect any data from the industry. Instead, look for a software tool that helps you collect tailor-made data and reporting templates.
Furthermore, the software should also accommodate large volumes of data and, at the same time, ensure data entries are valid.
What Next?
Now that you know the benefits ESG has to offer and the things that you need to look at when selecting an esg software, the only thing left for your business is to start using one.
Take help from this article and select the right ESG software for your business. This will help you create the most complete products that fulfill the audience’s needs.
