Unlocking Real Business Value from ESG

How Data Integrity helps companies realize the full business potential of ESG through better data and reporting

In recent decades, large organizations’ environmental, social, and governance (ESG) practices have become key business concerns requiring direct, active, and sustained attention from executive management. Far from being a simple question of managing corporate brand image, how a firm addresses ESG concerns can directly impact its hiring practices, profitability, legal liabilities, and even its fundamental ability to do business.

While governments are beginning to introduce formal ESG reporting regulations, the increased scrutiny of corporate ESG impacts is driven by growing public demand. Companies worldwide are expected to be
responsible stewards of the environment, treat employees and communities with respect and fairness, and be financially and ethically trustworthy corporate citizens.

Most importantly, corporations and their top executives are under increasingly heavy pressure from their most important and influential stakeholders to address their ESG impacts. While each stakeholder class may have specific reasons for their concern, the sum of their demands for answers and actions leaves no option but to respond.

Here are a just few examples:

• Investment managers and asset owners demand full disclosure of ESG risks that could impact the long-term value of their holdings
• Financial and stock exchange regulators are concerned about preventing market instability caused by fraudulent and misleading ESG claims and disclosures
• ESG raters, rankers, and reporters can suffer damage to their reputations if they publish investment analyses based on false or incomplete corporate risk disclosures
• Supply chain partners and business customers can also suffer damage to their reputations and revenues if they are involved with a firm with undisclosed serious ESG liabilities
• Consumers and employees strongly prefer to buy from and work for companies with excellent reputations for environmental awareness, ethical and fair business practices, diversity, and alignment with their values

Worldwide concern is already driving the development of increasingly stringent and demanding ESG data collection and reporting regulations that will compel serious corporate attention and response.  And these new requirements are neither incremental nor generalized, and meeting them will require a major, if not massive, organizational effort and IT investment for all but the smallest businesses.

In this eBook, we will review significant ESG concerns and issues; explain why complete, accurate, and actionable ESG data is critical for ESG reporting; and explore the range of data and IT processes that must be in place to meet requirements for corporate ESG performance tracking and reporting.