Tomorrow will be heldInternational ESG Daya global initiative dedicated to raising awareness and discussion about sustainable and responsible business practices. Although there is a lot of attention on the topic, companies are still stuck with ineffective and non-transparent data management.
An in-depth look at Mia-FinTech reports that although 83% of companies feel great confidence in their sustainability reporting capabilities, nearly one in two (47%) still use spreadsheets to manage ESG data.
However, the in-depth analysis also reports that, according to the “Rate the Raters” report, Publicly traded companies invest on average between $220,000 and $480,000 per year in ESG ratings and related services; similarly, private companies face an annual expense of between $210,000 and $425,000.
The study also reports that 90% of organizations intend to increase their investments in sustainability in the next 3 years.
“This data demonstrates how organizations consider ESG a strategic priority. However, Building a credible ESG program requires verifiable, accurate, high-level data that meets the needs of stakeholders and regulators. A goal that becomes difficult to achieve when the majority of ESG data is held in disconnected and separate reporting systems or even spreadsheets” he commented Bruno NatoliCEO of Mia-FinTech.
Using technology therefore becomes fundamental for collect, analyze, report and ensure the accuracy of ESG data. Companies seem to have understood the centrality of technological tools to become sustainable, so much so that it is expected that The global ESG software market is expected to grow significantly to 2.7 billion by 2032 (+222%).
Mia-FinTech’s in-depth analysis reports that growth is driven on the one hand by a greater attention of companies and investors towards sustainability; on the other, regulatory compliance, especially in Europe.
To address sustainability challenges it is necessary overcome legacy systems and information silosso as to facilitate the management of sustainability data.
The adoption of a ESG software integrated with a Data Hub allows you to define a simplified ESG rating which companies can then share with the various actors, both from a social, banking and communication point of view. The use of dedicated software it also facilitates internal information sharing and therefore collaboration between the different teams.
By centralizing and verifying ESG data from numerous sources the manual workload is reduced and therefore the margins of error; furthermore, using composable applications, the modularity, reusability and interoperability of assets is promotedthus improving process governance.
Finally, businesses succeed plan and implement emissions reduction strategies more easilyoptimizing energy consumption and improving economic efficiency.
“Collecting and making data accessible to banks, institutions, companies and citizens implies the creation of a “Data Hub”, a system that allows data from different sources to be aggregated, exposing it so that it can be easily consulted and used. This process supports quick and informed decisions, as well as facilitating the initiation of automated processes in real time, thus improving overall efficiency. With the «Fast Data» approach, this data is processed immediately, allowing organizations to respond promptly to market and user needs” concludes Natoli.
Source: www.tomshw.it
