In today's rapidly evolving business landscape, the need for organizations to prioritize decarbonization and meet stringent environmental, social, and governance (ESG) standards is more important than ever. From regulatory pressures to investor expectations and consumer demands, companies are navigating a complex terrain where sustainability isn't just a buzzword but a critical business strategy.
Organizations need to start tracking their EHS and decarbonization data in order to keep up and stay competitive. And that starts with finding digital solutions for their EHS strategy and management.
Challenges in data management and reporting
With regulatory frameworks evolving – such as the new EU requirements and California's recent legislation – companies around the globe are under increasing scrutiny to disclose their climate strategies and emissions data. Yet as regulations are rapidly rolling out, some companies may be left struggling to collect, let alone leverage, their environmental data effectively. Traditional methods are often manual, time-consuming and prone to errors, hindering the accurate measurement and reporting of emissions and sustainability metrics.
In fact, according to a survey, one in five construction materials leaders identified data collection systems or poor data quality as a "highly significant" or "very significant" challenge within their ESG reporting workflows. Moreover, 61% of those surveyed said they see data collection as a significant obstacle, emphasizing its importance in the immediate future.
The role of digital solutions
In response to these challenges, companies are increasingly turning to digital solutions to streamline their sustainability efforts. With the right technology and software, organizations are able to make informed decisions and meet reporting requirements more efficiently.
Define the strategy
When finding the right software, it’s important to first understand your organization's sustainability strategy. Questions to consider include: What data do you need to get, and what do you have already? What requirements or standards do you need to meet? What improvements do you want to focus on?
A strategic foundation will lay the groundwork of what a technology investment can support and help your organization maximize its capabilities.
Enhance decision-making with data
With a clear strategy in place, find the technology that will put the data and processes in place you need to see it through. Measurements should be built into operations, with the ability to hone in or zoom out across operations, using metrics and KPIs to understand where the company is now and provide the insights on where and how to make changes to accelerate progress.
By freeing up resources from manual data handling, digital solutions empower sustainability teams to focus on high-value tasks that are essential for long-term sustainability success. As stated in the EHS Today article “Why Decarbonization Depends on Digital,” technology can lift up human expertise to focus on moving the needle:
“Technology can make existing business processes more efficient to free up your sustainability team to perform higher-value, strategic activities. Rather than focusing on getting complete and accurate data, they’ll be able to spend time on the projects that will drive the incremental improvements you need to make progress toward your overarching decarbonization goals.”
Building a sustainable future
Achieving sustainability goals is a collaborative effort that involves breaking down data silos across organizational functions. While the journey may seem daunting, the digital transformation of data management offers a pathway for companies to navigate regulatory complexities and drive meaningful progress toward a more sustainable future.
As policies evolve and stakeholder expectations intensify, companies that prioritize digital solutions for their sustainability strategies will not only meet current demands but also position themselves as leaders in a rapidly changing global marketplace. By leveraging technology to enhance data accuracy, integrity and accessibility, businesses can forge a path toward sustainable growth that benefits both their bottom line and the planet.
How Ideagen can help
No matter where a company may be in its ESG journey, Ideagen has the tools to bring it all together and meet the standards of tomorrow. With the ESG & Sustainability software, organizations can both track ESG metrics and implement performance initiatives to achieve goals. Leading standards are built-in to guide organizations through what they need to track, so they can measure, report and improve metrics with confidence.
Request a demo today to understand how we can support you in adopting a digital solution for your EHS strategy.
