new generation can help companies ensure that they capture key overall performance signs in sustainability extra as it should be. some of those kpis include scope 1, 2 and 3 emissions, as well as facts on worker fitness and protection.
groups, specially public-listed companies, are an increasing number of predicted to fulfill relevant reporting and disclosure necessities. concern to extra public scrutiny of key environmental, social and governance (esg) metrics from diverse stakeholders, specifically from investors and ability companions, many businesses now need to provide certain data approximately how they are managing their herbal, social and human capital, as well as facts beyond what is traditionally collected, together with on their carbon footprints, commercial enterprise conduct and labour practices.
gathering, measuring and reporting these non-monetary information, but, may be tough. esg reporting has advanced quick over a quick time period, with information high-quality turning into a key awareness, and new standards, comparable to the ones for economic statistics, are rising. current worldwide suggestions, which include the international sustainability standards board (issb) of the ifrs foundation, the sustainability account standards board, and the global reporting initiative, to call some, are being consolidated on an ongoing foundation.
on the same time, different frameworks are emerging to distinguish among climate, nature and carbon reporting, together with the taskforce of nature-associated disclosures, the weather disclosure requirements board and the carbon disclosure task. esg reporting stays a complicated and moving landscape for businesses to navigate. employees engaged in the series, validation and management of esg-related metrics need to be communicated to and confident of powerful controls that may decorate the usability and clarity of such information.
groups can also face the following challenges:
now not knowing in which to begin and what records to record first
lack of resources to accumulate the needed information
speaking clean reporting suggestions to commercial enterprise devices
to ease this complex technique, establishments may also turn to era to reinforce their analytics competencies.
“globally, the sustainability generation landscape is at a nascent section, however it’s miles speedy evolving,” stated arina kok, malaysia weather alternate and sustainability services chief and partner at international accounting organization ernst & young (ey). the secret is to locate the right technologies to put money into, as organizations transform their enterprise fashions, she stated.
an oracle survey of greater than 11,000 customers and commercial enterprise leaders throughout 15 markets determined that 88 in line with cent of commercial enterprise leaders trust organisations that use technology to assist drive sustainability and social problems may be those to succeed in the long run. those leaders recognized key areas they need help in the collection and verification of statistics, goal planning and revision based totally on overall performance, in addition to file and evaluation automation. the survey record stated that people and era combined could make for significant trade.
malaysian corporations are ahead of the curve, in step with a current pricewaterhousecoopers (percent)’s
report. it determined that among asia pacific nations, malaysia sticks out for disclosures of boards’ duties and corporations’ esg governance systems. it’s also a few of the countries in asia pacific that display the highest stage of disclosure for mitigation techniques.
“with esg information more and more being utilized by the capital markets and various stakeholder agencies to make investment and shopping decisions, it has never been extra crucial to make certain that esg disclosures are of high quality,” stated herbert chua, partner, sustainability reporting and assurance at percent malaysia.
here are 5 technology-pushed solutions that can help extra enterprises improve the quality in their esg reporting.
1. strength control systems
the first step to knowledge an organisation’s carbon footprint requires the gathering and management of facts from diverse sources. power control systems (ems) can guide the tracking and optimisation of electricity consumption to preserve its utilization throughout an employer’s physical property, such as in factories and office buildings. currently, iso 50001, the global energy control widespread, specifies requirements for corporations to increase and enforce a robust ems, imparting enterprises with a framework that validates nice practices regarding electricity efficiency, use and intake. this typically calls for the gathering and evaluation of power consumption information, which may be implemented the usage of gadgets inclusive of smart meters, sensors and electricity tracking software program. areas of significant electricity use and possibilities for improvement are then recognized and establishments can better recognize their strength profile. in many cases, the iso 50001 is likewise used as a compliance course in support of other environmental regulations.
as an instance, telecommunications firm telekom malaysia was capable of calculate their indirect emissions and waste technology at 8 sites that put in force ems. using their “unified strength monitoring answer”, which incorporates advanced electricity behaviour analytics and alert mechanisms, the institution was capable of maintain tune of emissions facts in addition to reduce scope 2 emissions – oblique emissions from the technology of bought strength – by using 9.2 in step with cent in 2021.
another organisation that has benefited from tracking electricity usage thru an ems is ioi oleochemicals, a subsidiary of ioi plantations. the institution explained that the generation “offers visibility of energy drift and power consumptions to acquire foremost power performance”.
2. esg statistics tracking dashboards
corporations need to no longer be misplaced inside the deluge of facts because they do no longer have the proper gear to understand and analyse it in alignment with multiple international reporting standards.
this is where statistics warehouse and dashboard services are available. cloud-based, imperative repository systems permit establishments to collate esg information from multiple assets, providing a unmarried view of an organization’s esg overall performance.
putting this into practice, telecommunications group axiata has leveraged on a visible interactive dashboard in combination with their environmental statistics gadget. “these shape an important reference factor to persuade our short and long-term targets in addition to action plans,” said axiata.
further to helping the corporation identify opportunities to improve electricity performance, axiata also stated that the dashboard can feature as a key verbal exchange platform, growing attention of the company’s emissions amongst personnel.
three. integrated esg analytics structures
beyond esg records series and review the use of dashboards, there are actually analytics structures that agencies can use for higher planning and optimisation of resources. those systems use numerous metrics to calculate affects, create reports, liberate information for analysis and offer actionable insights for organizations to act on. the result is a similarly streamlining of an business enterprise’s esg efforts.
many software program vendors now provide integrated sustainability-targeted analytics solutions. hong kok cheong, dealing with director of software program issuer sap malaysia, said that when businesses have complete transparency on their environmental footprint to reveal and document on sustainability metrics, they could pick out regions for development and adapt to converting regulatory conditions.
in its current sustainability record, engineering, property and infrastructure business enterprise gamuda stated that the use of an analytics platform centered on resource planning, had helped in improving facts processing and transparency.
“for the reason that digitalisation of procurement and deliver chain processes, the institution had performed more than rm300 million in financial savings thru supply chain collaboration to reap greater competitive pricing in turning in superior values to project stakeholders. a holistic digitalisation initiative in procurement removes big paper consumption which might be circulating in the supply chain tactics,” gamuda said.
four. ai and gadget getting to know for situation making plans
synthetic intelligence and gadget gaining knowledge of are a number of the new frontiers for agencies to navigate in terms of scenario modelling. for agencies searching at meeting particular united countries’ sustainable development dreams (sdgs) or different sustainability-related goals, facts may be fed into scenario-based models in the context of their sustainability plans. with machine mastering skills, styles in useful resource allocation and opportunities for manner optimisation can be diagnosed.
for example, client items massive unilever sought to enhance its logistic performance and decrease fees with the aid of deploying a multi-mode transportation management gadget to advantage better visibility of its operations and streamline its transportation fleet. the gadget expanded unilever’s visibility of shipping lanes. with the use of computerized planning algorithms, car and box utilisation had been also optimised. records furnished via oracle applications (asean), which provides unilever with the scenario planning machine, indicates that typical emissions of the company’s shipping emissions had been decreased by nine in line with cent as a result.
five. interactive reporting
communicating sustainability initiatives and metrics with various stakeholders, from traders and clients to personnel and providers, can be advanced with interactive reporting technologies that make esg facts on hand and applicable to every organization.
to this stop, several companies of the above-mentioned solutions, together with included esg analytics platforms, have made it viable for each inner and external stakeholders to collaborate on statistics and esg narratives. this includes providing third-birthday celebration vendors or suppliers with get entry to to input their metrics, to provide an corporation’s senior control, board and investors a more holistic review of their supply chain.
as for investors and clients, interactive sustainability reports which can be digital-first can enhance engagement and distribution. simple tweaks, which includes using responsive layout, can make reports greater available across distinctive devices, while hyperlinks in the report can develop the get right of entry to readers need to an corporation’s present sustainable regulations or practices, further enriching the esg narrative.
“buyers are increasingly involved about greenwashing in esg reporting, marking the call for public restrained companies (%) to provide greater precise and transparent non-financial facts to help steer their funding decisions,” ey’s kok said.
“reporting on the modern kingdom of esg and sustainability isn’t always enough. the intention – in traders’ and customers’ minds – is to drive exchange, and for that, you need the data to inform you not most effective where you are now but also in which you need to go,” oracle said on their internet site.
in the end, generation is handiest as effective because the reason it fulfils, percent’s chua said. corporations should ensure that underlying the implementation of new generation, rigorous approaches and internal controls are implemented alongside effective governance practices and the right human competencies to use the statistics and take suitable moves.