With regulators demanding more transparency around a business’ impact on the environment, it’s essential to invest in ESG reporting software that tracks environmental metrics and provides actionable insights. Discover how to take a proactive, not reactive, approach to covering your environmental bases and satisfying not only compliance laws, but your stakeholders.

Take a proactive approach to the E in ESG.

Shareholder activism around environmental responsibility has been growing steadily for several years now. While companies have previously responded to activist shareholder demands in loose commitments with few hard measures, this is changing rapidly as investors, customers, employees and now regulators demand increased commitment and transparency about environmental impact. There is now evidence that when CFOs think like activist investors, they can add 2.5 percentage points to economic value added in comparison to peers that take a purely reactive approach.  

With Environmental impacts – from greenhouse gas emissions to waste management – taking up growing mindshare, a proactive approach means getting ahead of strengthening regulations through rigorous reporting and transparency through a connected platform

What investors want to see

Investor expectations for Environmental programs have evolved beyond a simple demand for companies to acknowledge impacts on the environment and pledge to do something about it. With increasing awareness of greenwashing as a hollow promise, investors are demanding greater insights into Environmental data. Today, the expectation is that ESG data collection is:

  • Tracked: Environmental metrics should be tracked to the most granular level possible to provide the most information for analysis.
  • Transparent: To earn and build investor trust, metrics and reports should be easily assembled and readily available in official disclosures to stakeholders.
  • Actionable: The metrics gathered should be deeply and frequently analyzed to produce insights that guide upcoming strategy. 

Regulators are driving for transparency and accurate metrics, while investors, customers and employees want a vote on ESG posture – or they will vote with their wallets and feet. 

SOURCE : SAI360

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