Making the transition to a more responsible business model

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Once seen as an optional addition to a business’s operations, Environmental, Social and Governance (ESG) and sustainability are now viewed as vital to a company’s future growth. Organisations are no longer simply asking when a sustainability agenda should be integrated into planning, but rather – and more importantly – how a robust and meaningful transition can be undertaken without the business being harmed.

In recent years, investors have been clear that the ESG frameworks of their would-be prospects are central factors in determining the potential provisioning of assets. And this isn’t just an ethical matter: climate change and related crises have become a defining factor in the long-term viability of businesses, and investors want their investments to reap returns well into the future.

But aren’t there significant risks involved in evolving business practices with changing demands? Isn’t there a chance that if a company shifts from a purely economic approach to business growth to one that incorporates social and ecological considerations, its growth will be significantly affected? For many companies, realising ESG targets isn’t just about making tweaks here and there to limit energy consumption and waste generation. There are supply chains to examine, communities to contemplate and the behaviours of the consumers buying and using their products to consider. Failure to carefully integrate sustainability into business strategy could introduce risk, increase costs and even threaten the long-term viability of an organisation.

Building the foundation needed to make an impact

Cority has helped many organisations as they make the transition into ESG and sustainability. They know that a key factor for success is the need for businesses to develop a foundation of governance structures and tools to guide them through the process. These comprise policies, defined roles, processes and information systems helping to communicate and engage with employees and the business community, investors and regulators. This also enables them to collect and aggregate high-quality data from which they can make decisions.

Companies must engage internal and external stakeholders to determine where they have an impact and align sustainability performance goals with expectations. It is also critical to improve their access to information and data-gathering processes. Do they have the data they need? Is the data detailed enough to allow insight into the aspects of the operations where actions can have an impact? Is the data accurate? Can it be reported, audited, assured and trusted by stakeholders?

Without such tools, processes and data, businesses cannot reliably determine what actions can be taken to meet the goals they and their investors have set out. And this will have knock-on effects.

Changing employee and stakeholder demands

Beyond the increasing number of reporting requirements and regulations – such as the EU taxonomy for sustainable activities and the Sustainable Finance Disclosure Regulation (SFDR) – numerous studies have shown that employees put great value on the sustainability credentials of potential employers. Surveys have shown that candidates are more likely to work for a company that has developed strong environmental policies. Meanwhile, having clear goals around sustainability is proven to have a positive effect on whether or not companies can retain their employees.

Within those findings lies another reality that businesses must acknowledge and act on. If the shift to more sustainable business performance is to be effective and long lasting, it must become a part of company culture. If employees are to participate, they need to feel as if they are part of the process. Clear communication on sustainability goals between management and staff is therefore vital, and employees should know why changes are being made, how they are relevant to them and how they can influence performance.

Centralising data-driven decisions

With tools for employee involvement, stakeholder engagement, supplier outreach and reporting, Cority helps organisations collaborate, exchange information and tell their sustainability story both internally and externally.

Central to Cority’s ability to steer businesses towards improved sustainability performance is its Sustainability Cloud. A key value of the cloud technology is that it can streamline the aggregation of sustainability data through integrations, automated processes and simplified collection tools, enabling companies to gather, standardise, process and analyse the data points needed for sustainability audits and action.

Cority then uses a range of other tools to organise that data into a single central source, thereby ensuring it can produce consistent and streamlined reporting. On top of this, it organises and analyses operational data, meaning businesses can identify operational changes that will improve performance and allow them to trace their data from source to report. This data is not only comprehensive and accurate but also able to withstand rigorous financial audits.

This centralisation of data means that, for instance, a large organisation that identifies waste reduction as a strategic initiative can have one system in which a range of disparate data points can all be brought together, analysed and improved; sites can be benchmarked and compared; sites with less desirable disposal methods can be identified and action taken; divertible waste streams can be detected; and purchasing decisions can be based on site-specific use. All of this ultimately results in a reduced footprint, impact and cost.

Meeting organisations where they are

Only if the data is carefully organised and analysable, providing a holistic view of organisation-wide performance, can effective action plans be developed and implemented. Employers can, for instance, then provide targeted training for those sites where methods need improvement, as well as other weak points. As a result, footprints can be evaluated, environmental impact reduced and money saved. A company’s improved performance will quickly reach those who matter: employees, investors and consumers.

Whether an organisation is just getting started or working to advance an established sustainability program, the powerful and flexible Cority solution can meet companies where they are and evolve with them to support the long-term success and sustainability of their business.

Discover your pathway to sustainability management & ESG reporting success today.

Originally published on Business Reporter