Harnessing ESG management and reporting for businesswide value

Driving better insights for ESG decision makers, and creating businesswide value for customers

Contact us for your ESG Data management needs

Introduction to ESG management

In the ever-evolving landscape of business ethics, Environmental, Social, and Governance (ESG) serves as a compass. ESG encompasses a wide range of issues - from climate change, natural resources, and pollution to human capital, social opportunity, and corporate behavior. The goal is to ensure that companies consider not only their profit margin, but also their impact on the world and society. By effectively managing ESG data, companies can drive positive change, enhance their sustainability efforts, and meet the growing expectations of stakeholders. 

The three ESG-pillars

Environmental

Under this pillar, we scrutinize factors such as climate change, pollution, resource utilization, and biodiversity.

Social

In social responsibility, factors like employee relations, human rights, diversity, inclusion, and community engagement take center stage. 

Governance

The governance pillar delves into board structure, executive compensation, risk management, and transparency. 

The significance of ESG

ESG has taken the forefront, gaining significance for both businesses and investors. ESG principles are a guiding force, steering businesses towards sustainability, ethical conduct, and long-term success. ESG principles are not just about compliance; they represent an opportunity for businesses to excel in an ever-changing world.

By embracing ESG management, companies reap a multitude of benefits:

  1. Reduced risk: ESG factors empower businesses to identify and manage risks linked to climate change, pollution, and sustainability concerns.
  2. Improved performance: ESG principles drive performance improvements, impacting  employee productivity, customer satisfaction, and brand reputation.
  3. Attracting and retaining talent: As employees seek socially responsible workplaces, ESG commitment becomes a magnet for attracting and retaining top talent.
  4. Access to capital: Investors now favor companies exhibiting robust ESG performance, making it a crucial factor for accessing capital. 

What is ESG Management? 

Embarking on a successful ESG journey requires a strong foundation. The key components for ESG management pave the way for businesses to thrive:

  1. ESG Strategy: At the heart of ESG management is a strategic blueprint aligning ESG with core business values, fostering integration into operations and decision-making.
  2. ESG Governance: Defined roles and responsibilities, alongside robust processes and systems, steer the ship of ESG management, ensuring that all stakeholders play their part in addressing ESG concerns.
  3. ESG Risk Management: Identifying, assessing, and managing ESG risks, both immediate and long-term, direct and indirect, is essential for securing business stability and growth.
  4. ESG Performance Monitoring and Reporting: The journey continues with planning and implementation. Consistent tracking and transparent reporting through ESG reports, sustainability platforms, and social media channels are crucial for maintaining ESG progress over time.

Incorporating these key ESG management components is the roadmap to business success in the ESG landscape, DXC is here to guide you every step of the way.

To delve deeper into ESG strategy and sustainable growth, take a look at our blog: ESG strategy for sustainable growth: from compliance to leadership. 

Challenges in ESG Data Management

To achieve sustainability goals, companies face significant data management challenges. These include:

  • Dispersed Data Sources: Managing ESG data from multiple systems and platforms can be time-consuming and complex.
  • Manual Processes: Labor-intensive tasks hinder efficiency and increase the risk of errors.
  • Evolving Regulations: Keeping up with rapidly changing ESG regulations poses compliance challenges.
  • Duplicative Data Requirements: Meeting various disclosure obligations with redundant data collection efforts wastes resources.
  • Data Source Traceability: Lack of an audit trail for data sources and approvals compromises transparency.
esg transformation

ESG data collection 

Effective ESG management hinges on robust data collection and analysis. The role of ESG data is paramount as it empowers businesses to:

  • Identify and Assess ESG Risks and Opportunity 
    ESG data serves as a compass, enabling businesses to pinpoint and evaluate risks and opportunities within the ESG realm. This invaluable information guides the development and implementation of strategic mitigation and management strategies. 
  • Set and track ESG goals and targets
    ESG data becomes the cornerstone for goal-setting and tracking, ensuring that businesses remain aligned with their ESG commitments and can measure their progress over time.
  • Report on ESG performance to stakeholders 
    ESG data isn't just an internal resource; it's an essential tool for transparent reporting to stakeholders, including financial investors, customers, employees, and the broader community.

Furthermore, ESG data also holds the power to:

  • Facilitate Informed Decision-Making
    In every facet of business, from product development to supply chain management and marketing, ESG data guides better decision-making.
  • Enhance Operational Efficiency
    ESG data optimization paves the way for operational efficiency and cost reduction, strengthening the financial backbone of your organization.
  • Attract and Retain Top Talent
    In an era where top talent seeks socially responsible workplaces, ESG data is your beacon, showcasing your unwavering commitment to sustainability and social responsibility.  
At DXC, we understand the transformative potential of ESG data, and we stand ready to empower your journey toward ESG excellence. To gain further insights into effective ESG data management and avoid common pitfalls, explore our blog post 5 Common mistakes made in ESG data management. 

Progress Monitoring

Another essential element for effective ESG management is Real-time progress monitoring. By harnessing the power of real-time data, businesses can:

  • Identify and address problems early: Real-time monitoring enables businesses to spot and address ESG issues at their nascent stages, preventing potential escalations that could be both time-consuming and costly in the long run.
  • Stay on course with ESG goals: Real-time monitoring acts as a compass, helping businesses align with their ESG objectives. Continuous real-time tracking empowers businesses to adapt strategies and plans as needed, ensuring unwavering commitment to ESG goals.
  • Enhance stakeholder transparency: Real-time monitoring fosters increased transparency with stakeholders by sharing current ESG data. This openness strengthens trust, underlining a company's dedication to ESG and its commitment to building lasting relationships.

Moreover, real-time ESG progress monitoring offers businesses the tools to make informed business decisions, boost operational efficiency, and attain and attract top talent. However, to do this, an efficient data platform that seamlessly consolidates information, simplifies report generation, and offers user-friendly operation is indispensable.

To delve deeper into the importance of an ESG data platform and why ServiceNow stands as the ideal choice, explore our insightful blog, The importance of an ESG data platform and why ServiceNow is the ideal choice. 

Whitepaper Start your journey towards ESG enlightenment

Elevating ESG reporting with automated reporting

Another key element of ESG management is automated ESG reporting. It can help businesses to:

  • Enhance efficiency and precision: Automated ESG reporting streamlines the data collection, analysis, and reporting process, saving businesses valuable time and resources. The result is not only efficiency but also heightened accuracy in ESG reporting.
  • Amplify reporting frequency: Automation enables businesses to boost the frequency of their ESG reporting, keeping them aligned with ESG commitments and fostering transparency with stakeholders.
  • Enhance reporting quality: Automated ESG reporting bolsters the quality of ESG reporting by ensuring consistency, standardization, and clarity. It's a guarantee that the data presented is not just accurate but also readily comprehensible.

Once more, having the correct ESG tools is paramount. In the following chapter, we will elucidate the reasons and recommend the optimal tooling to attain ESG excellence.

To delve deeper into ESG reporting, read our blog on The four key data management steps for effective ESG reporting. 

ESG tooling and ESG management software

As emphasized previously, selecting the appropriate ESG tooling or software is of utmost importance. Good ESG management and reporting tooling should possess user-friendliness, extensive coverage, seamless data integration, adaptability to customized requirements, flexibility in accommodating shifts in ESG reporting standards and regulations, and scalability. These qualities are indispensable. This is why we suggest ESG management with ServiceNow.

ESG management with ServiceNow

ServiceNow is an unrivaled platform, seamlessly integrating the power of ESG data, real-time monitoring, automated reporting, and comprehensive data analysis. With its user-friendly interface and adaptability to changing ESG standards, ServiceNow not only streamlines ESG operations but also enhances transparency and reporting quality. As a trusted partner, DXC recognizes the transformative potential of ServiceNow in shaping a sustainable and responsible future, and we are here to guide your organization on this journey. With ServiceNow, ESG management and reporting become more than a commitment; they catalyze for lasting success. 

Discover ESG management with ServiceNow

Extra tips for effective ESG management and reporting

In the ever-evolving business landscape, ESG management and reporting are cornerstones of enduring success. By embracing ESG principles, businesses not only fortify their path to longevity but also unlock numerous advantages, including risk reduction, enhanced performance, talent attraction, and access to vital capital.

Here are some additional tips for effective ESG management and reporting and long-term success:

  1. Engage stakeholders  
    It's imperative to establish meaningful connections with stakeholders, gaining profound insights into their ESG priorities and expectations. Engagements through surveys, interviews, and workshops ensure alignment with stakeholder values. 

  2. Set ambitious goals 
    ESG objectives should be ambitious and attainable, fueling continuous progress and fostering innovation within your organization. 

  3. Champion transparency 
    ESG reports should exemplify transparency and honesty, shedding light on favorable and challenging ESG performance aspects, reinforcing trust and credibility. 

  4. Embrace continuity 
    ESG management and reporting aren't isolated endeavors; they are enduring processes. This continuous commitment ensures consistent progress toward ESG goals and alignment with stakeholder anticipations. 

To delve deeper into ServiceNow ESG Software, read our blog on Empowering sustainable transformation and impact.

 

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Contact us for your ESG Data management needs

DXC understands the pivotal role ESG plays in business success and offers expert guidance to navigate this transformative journey. Your sustained ESG commitment is the key to shaping a sustainable, prosperous future.

 Ready to build a strong foundation for your ESG data management and drive sustainable impact? Call us at (+31(0)88 447 4574) or fill out the form, and our ESG ServiceNow Expert will be in touch shortly. 
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DXC Technology (NYSE: DXC) helps global companies run their mission-critical systems and operations while modernizing IT, optimizing data architectures, and ensuring security and scalability across public, private and hybrid clouds. The world's largest companies and public sector organizations trust DXC to deploy services to drive new levels of performance, competitiveness, and customer experience across their IT estates. Learn more about how we deliver excellence for our customers and colleagues beyond our ServiceNow capabilities at DXC.com.