With the Australian government committing to a significant reduction of greenhouse gas emissions by 2030, the popularity of environment, social, and governance (ESG) policies is at an all-time high. Customers have now come to expect businesses to make sustainable choices available to the broader public, and businesses worldwide increasingly recognise the importance of ESG in driving success.
It’s clear that data is a key driver for the world economy and, indeed, for the decarbonisation of the planet. It’s time for businesses to put data at the centre of their organisation and look for ways to optimise operations in an ESG context. While many already recognise the value of data and the importance of data-driven decisions, failing to prioritise data integrity and adopt analytics capabilities can impact an organisation’s ability to meet its ESG goals. Ultimately, organisations need to move beyond this if they want to achieve success.
Businesses can meet ESG goals by applying advanced cloud-based technologies such as artificial intelligence (AI) and the Internet of Things (IoT) to turn data into actionable insights. By breaking down data siloes, integrating external databases and assigning values for emissions accurately per product, businesses will be empowered to improve operations across the board, and provide sustainable options for customers.
The benefits are evident when it comes to implementing advanced data analytics. They include:
- Greater agility: Having the flexibility to respond faster to internal and external changes makes businesses more agile. With an agile mindset, businesses can navigate the evolving ESG landscape for reporting requirements and pivot and bend to meet new demands that enhance employee, investor, and wider stakeholder approval.
- Live data analysis: Real-time data analytics are helpful for businesses that need to analyse large amounts of data quickly, including ESG-related information. This helps companies measure, manage, and monitor their sustainability profile, performance, and risk compared to their competition. It also ensures capital is allocated efficiently with a clear goal of where the business is heading with long-term ESG strategies.
- Best practice processes across every cell of the organisation: By adopting best practice processes, companies can challenge the current business status quo to become more resilient, successful, and sustainable. For example, a company can adopt a solution that offers visibility across its entire business to gain insights needed to comply with new regulations, thereby minimising the risk of employee turnover and customer distrust.
Unlocking the power of an agile and sustainable intelligent enterprise
Leveraging data to support ESG objectives needs to go beyond the technical operations of a business. The commitment to using data to drive more sustainable practices needs to be cultivated in the culture of the business itself, starting with its people.
Having sustainable practices embedded in business culture can create long-term value by boosting employee satisfaction, creating attractive employment destinations, driving higher profitability by lowering overhead expenses, reducing waste, and increasing customer loyalty. However, while many businesses are committed to strong ESG practices, staying on track to meet those goals is becoming harder than expected.
Transforming into an intelligent enterprise could help companies meet growing expectations for ESG reporting and significantly impact financial performance. The journey starts by understanding why a business wants to change. Then, it involves creating a connection between human experience and operations and applying advanced IT and best practices that help to achieve success and manage environmental impact.
Implementing technology such as enterprise resource planning (ERP) software can help to manage carbon footprint, reduce material waste, and achieve social sustainability. With the right solutions and support in place, businesses will be well-positioned to lead in reducing environmental impact, meet business targets, and bring real value to customers.