Whether you’re just starting out in Environmental, Social and Governance (ESG) reporting, or you’ve had an ESG program in place for years, you know ESG data collection and management can be a significant undertaking.
ESG reporting requires information pulled from multiple sources which inevitably leads to spreadsheet fatigue. And as anyone who has ever tried to compile utilities data from providers up and down the supply chain knows, it can be challenging to wade through the numbers and make reporting easy to update on a regular basis.
Today, many companies turn to software solutions to streamline their ESG data collection and facilitate data management. With investors demanding comprehensive and transparent ESG reporting, it’s important to choose the ESG software option that best meets your needs and simplifies your reporting efforts.
Here’s what you need to know in order to identify what you need from your ESG software.
what is ESG software?
ESG reporting software is a solution to help streamline your ESG data collection and calculate impacts through the various metrics included in ESG standards and frameworks. It does this through features such as:
- Cloud-based access, meaning data can be entered by multiple staff from different departments and at different locations
- Integration with Internet-Of-Things (IoT) to collect data and cut back on redundancies
- Emissions calculations using published and verified emission factors
- Modules designed to align with internationally-recognized ESG standards and frameworks
- Reporting templates that can be tailored to your needs and operations
- Real-time data updates to provide snapshots of your company’s progress
who uses ESG software?
Organizations of all sizes and from all sectors use software to track ESG data for their company including:
- Agriculture and food production
- Automotive manufacturing
- Cybersecurity
- Engineering and construction
- Finance and investment
- Government
- Hospitality
- Oil and gas
- Post-secondary institutions
- Transportation and shipping
how can ESG software help your business?
All ESG software platforms offer different functionality, but a comprehensive platform should be able to do the following:
1. prepare emissions calculations
Those starting out in sustainability reporting often find the process of compiling annual carbon emissions highly time consuming and labor-intensive. Reporting on your Scope 1, 2 and 3 carbon emissions from throughout your operations and supply chain means collecting information from multiple sources – and in many cases, these sources each report numbers using different units of measurement.
ESG data collection can be streamlined with the right software solution. Data can be populated directly at the source, converted into standardized units, and run through published emission factors to
determine your overall carbon footprint. The best part? Once your data is populated, you can easily update your calculations on a regular basis.
2. manage philanthropy data
Community engagement and charitable giving are an important part of many Corporate Social Responsibility (CSR) and ESG programs, but depending on the size of your organization, fully understanding the scope of your giving may be challenging. Multiple offices or regions may have their own budgets and initiatives that they are responsible for, yet ESG reporting requires consolidated information.
The right software centralizes your philanthropic ESG data management. It can help tie charitable initiatives back to specific parts of your ESG strategy and corporate goals, thereby simplifying reporting.
3. quantify diversity, equity, & inclusion
In recent years, many corporations have spent significant time and effort to formalize their diversity, equity, and inclusion (DEI) initiatives. But while a public statement about a commitment to an equitable workplace may be great PR, investors are now demanding quantifiable proof about the progress made to achieve those same commitments.
ESG software can help you map your DEI strategy using interactive maps and visualization tools. Through this, companies can identify and track key metrics and more easily communicate their vision for a diverse and inclusive workplace, as well as their progress to achieve those desired results.
what types of ESG software are available?
Not all ESG platforms are created equal and many offerings that promise a complete ESG snapshot are really just climate accounting tools that have been repackaged to appeal to a broader market.
For a full understanding of what components your ESG platform should have and how it might need to grow with your business, read our blog: What Makes A (Great) ESG Platform.
When assessing which software solution is right for you, however, you’ll need to make sure you understand what each one does, and does not, do. For example:
“Sustainability” software may include carbon accounting capabilities only, or it could include other metrics like waste management and water stewardship
Some CSR software focuses primarily on the social elements of reporting, like charitable giving or DEI, rather than your community impacts
ESG reporting tools might support data collection, but cannot derive insights from your ESG data to support future strategy development
A comprehensive software system like the AMCS Sustainability Platform includes analysis tools for all parts of your ESG program, including environmental, social and governance reporting.
To see how AMCS can facilitate your corporation’s ESG reporting programs, speak with an expert today.