What gets measured gets managed. This is especially true of environmental, social, and governance (ESG) metrics, where data capture and management present a challenge for many organizations. A robust data foundation can help you slice and dice insights for different reporting needs. But when data types like electricity, water, waste, gas, supplier data, performance KPIs, and more exist in a myriad of siloed systems, the question is: Where do you even start?
One of the first places to start is by reviewing your organization’s reporting requirements based on its sustainability commitments, to understand what data you need to support them. But that’s only a piece of the puzzle. Read on to learn how to help streamline the collection and consolidation of your ESG data into a foundation that supports your GHG accounting and sustainability disclosures.
Timely data capture, supported by consistent and repeatable ways of capturing data, can help reduce time and increase the efficiency of reporting processes. Here are some ways to strengthen ESG data capture:
When ingesting ESG data, an automated software platform is superior to manual spreadsheet entry.
Gaps in ESG data can result from poor quality data or a lack of quality controls in the data collection process. These gaps may result in missed opportunities to evaluate your performance and can lead to lower-than-expected results or scores. It may sound straightforward but effective data maintenance requires dedicated focus, regular attention, and clear lines of responsibility. Here are some tips to improve data completeness and quality:
An increasing number of climate-related disclosures require robust, auditable ESG data. The latest case in point is the SEC’s climate disclosure rules that are poised to require organizations to report on their ESG metrics in 10-K filings. Your GHG accounting practices must support reliable, consistent reporting that eases the audit process and allows for year-on-year repeatability and comparison. Here are some things to consider:
Not all data is equal when reporting for ESG, so processes that yield more accurate data can help alleviate some of the stress associated with reporting time. Here are some ways to enhance the accuracy of ESG data for better quality reporting and insights:
ESG reporting season can be stressful. So after a reporting cycle, make sure you celebrate wins and have processes in place to learn from mistakes so you can improve reporting outcomes over time.
Tamara Robinson is a senior marketing leader in IBM’s Sustainability Software business. She plays a key role in the global go-to-market activities for Envizi, IBM’s data and analytics platform for emissions management, ESG reporting and ESG performance management. Prior to joining the tech sector, Tamara has worked in market-facing roles within the alternative energy sector, including gas, hydrogen and solar.