The Imperative of ESG-aligned Strategies in Business: A Data-Driven Approach to Achieve Net Zero Goals
Awareness of Environmental, Social, and Governance (ESG) factors is rising. Modern-day organisations must now devise new ways of leveraging data, standards, and regulations to evaluate their sustainability and societal impact. Businesses have to take ESG seriously and delve into the role of accurate data in saving money as well as in contributing to environmental sustainability and achieving net-zero goals.
‘Being ESG assurance-ready means identifying the relevant regulatory framework and having the right metrics with robust systems, processes, controls and governance for collecting and managing the data,’ said Larry Bradley, KPMG’s Global Head of Audit in a report which recognised that ¾ of global firms are not ready for ESG.
Privacy concerns, data silos, and integration complexities can prevent organisations from working together and sharing data effectively. By leveraging access to comprehensive information, Stakeholders gain access to a wider range of data, including real-time and historical information. This enables them to make more informed decisions as it relates to improving efficiency and productivity.
The challenge organisations face while implementing ESG strategies is striking a balance between achieving positive change and financial profitability.
Trusted data, a Data-Driven Approach to meeting shared goals
While ESG benchmarking and accreditation [are] becoming increasingly important for company growth, it’s only supportable if companies have access to the power of measurable data. Many family businesses have under-invested in technology and data over the years, but now it has become an additional commercial imperative’. – Tom McGinness, Global Leader, Family Business, KPMG Private Enterprise, KPMG International, Partner, KPMG in the UK
Strong governance ensures ethical behaviour, transparency, and effective oversight, promoting long-term sustainability. Such efforts coalesce to create an environment that encourages the enrichment of data through sharing and collaboration, and stakeholders can collectively strive for positive outcomes for their organisations and the broader ecosystem.
This provides a multitude of benefits to stakeholders, including enhanced decision-making, increased efficiency, a focus on innovation, data-based risk mitigation, transparency, cost savings, ecosystem growth, and information empowerment.
As more stakeholders join the ecosystem, the value of the data increases, creating a positive feedback loop that attracts even greater participation. The capabilities of a well-maintained data ecosystem can adapt to evolving needs and technologies, ensuring its continued relevance and value over time. Organisations can accelerate progress towards achieving their ESG goals, aligning them with operational goals, customer expectations, and long-term success.
Secure-by-design: Secure Sharing of Data, Information, and Actionable Insights
Organisations often grapple with the intricate task of securely sharing data across various stakeholders while maintaining data integrity.
State-of-the-art technology ensures that the confidentiality and integrity of data are upheld throughout the entire transfer process. In addition, IOTICS technology promotes trust and secure-by-design solutions that reduce the fear and risks associated with data sharing, enabling organisations to share raw data, information, and insights freely.
In the face of diverse systems and data sources, achieving trusted interoperability is paramount. IOTICS enables seamless cooperation and integration across homogeneous systems and data sources, providing flexibility for organisations to optionally interoperate with vendors, partners and suppliers.
Shared data allows multiple organisations to transparently communicate their progress and impact to stakeholders, including investors, customers, and regulators. Access to shared data enables organisations to benchmark their ESG performance against industry peers. This comparison provides valuable insights into areas where improvements can be made, helping companies set meaningful goals and track their progress over time.
The importance of cooperation to Achieving Net-Zero Goals:
Like many councils, Portsmouth declared a climate emergency in 2019. In order to realise sustainability targets, Portsmouth International Port decided to align its goals and objectives with the council and set off on an ambitious journey to enable the port to become carbon-net-neutral by 2030 and emissions-free by 2050.
ESG-focused companies are better positioned to innovate and adapt to the changing market landscape with the ability to access accurate data to help identify areas where carbon emissions can be reduced, facilitating the transition to cleaner energy sources and sustainable practises along with creating new revenue streams while contributing to environmental goals.
IOTICS was commissioned to overcome these logistical barriers with the implementation of digital cooperation, utilising digital twins and data sharing to optimise operations.
‘We are able to make data available dynamically from all sorts of sources in and around the port because our living lab includes an ecosystem of digital twins which share data securely.’ – Elly Toyer
Elly’s role involves identifying, developing, and championing projects to drive the port towards its sustainability goals smartly and efficiently. Using shared data from all of the stakeholders involved in the port, Elly was able to create a decarbonisation strategy at the port using trusted data to understand the challenges faced by the port around omission and air quality while meeting commercial targets.
‘One of the huge values from Shape – I get to see my air quality monitor in action every single day and can see the different trends in the data, so when there is a spike, it really stands out.’
Elly discussed her passion for sustainability and other industry insights on a recent IOTICS podcast.
She goes on to explain how, due to sharing across the port’s ecosystem, she can be more efficient with her reporting: ‘For me, this is brilliant as I’m going to be able to start identifying when poor air quality as it is happening and open lines of communications with our customers and discuss the impact on air quality around the port.’
The Role of Data in ESG Implementation:
Building sustainably goes beyond bricks and mortar. It's about embedding Environmental, Social, and Governance (ESG) principles into every aspect of infrastructure. From reducing carbon emissions to promoting social equity, building infrastructure requires a whole systems approach. - Janet Greenwood, Director, Infrastructure Advisory Group, discusses this and more in her latest report on sustainability in the built environment.
But what does this comprehensive approach look like in practise?
Stakeholder Engagement – Data facilitates effective communication with stakeholders, demonstrating transparency and accountability in ESG initiatives.
Predictive Analytics – By leveraging predictive analytics, companies can anticipate future ESG challenges and proactively implement strategies to address them.
The incorporation of ESG considerations into business strategies is no longer optional but imperative for long-term success. Access the right data, at the right time is not only a cost-saving measure but also a key driver in achieving net-zero goals.
A commitment to ESG principles is supported by accurate data. It allows businesses to evolve, innovate, and thrive. This fosters a sustainable and responsible business environment that benefits both the company and the planet.
To learn more about how IOTICS can provide comprehensive data solutions for your organisation, contact us today.
When we work together to improve data utilisation and practises, the future we can achieve is much brighter.
