To truly understand your company’s ESG data (environmental, social, and governance), you should first familiarize yourself with each core component of these data sets.
Because so many investors are now prioritizing sustainability and social justice in their portfolios, companies must share this data to help build investor trust and loyalty.
Table of Contents
Design an organizational structure
Defining your company’s organizational structure is vital in deciding who will be responsible for what. Your company’s stakeholders will want to know that they can trust you when delivering accurate information about your ESG data.
Create an organizational structure by having a dedicated team responsible for collecting and disseminating the information. You can also make the data available with an ESG data platform that makes managing data insights easier.
Include diverse views on policies
When developing and sharing policies with your stakeholders, it’s essential to consider all sides of the issue. After all, your stakeholders are the ones who will be affected by the policies you put in place. The policies that work best for one company might not be the right fit for another.
Include diverse views when creating or updating your sustainability policy to ensure that your approach matches your company’s specific needs and goals. You will also have a better chance of achieving buy-in from a wider pool of stakeholders.
Both management and employees will have more ownership in the policy if they’ve had a voice in its creation. By including diverse views, you can ensure that your policies are well-rounded and thought out.
Document your policies
Start-ups and smaller enterprises often underestimate the effort required to create and implement robust corporate social responsibility policies. Take a moment to document your company’s policies on the permissible use of data.
The most effective way for organizations to maintain control over their databases is by creating an explicit set of guidelines outlining acceptable ESG practices. A well-written policy will help protect your company from liability for any violations by third parties.
It will help ensure that your stakeholders understand your process and hold you accountable. Furthermore, it shows that you’re taking the issue seriously and are committed to being transparent.
Decide which metrics to include
Another essential part of sharing your company’s ESG data is deciding which metrics to include. ESG stakeholders care about different things, so there isn’t a one-size-fits-all solution for which data points to track. You’ll want to ensure you report the most critical areas to other stakeholders.
ESG metrics should be holistic for sustainable business and unbiased by adopting a worldwide reporting standard. Get feedback from your stakeholders on what information they want to see and how they want it delivered.
Give your stakeholders enough context to understand each metric’s significance. Be creative in presenting data to draw people in and keep them engaged using visualizations.
Have a simplified report version
Understanding how ESG issues can affect a company’s performance and overall sustainability will help stakeholders make more informed decisions about investing in your company.
They likely don’t want to see all the detailed information that goes into making your calculations. But instead to easily access and understand this information by providing a simpler report version.
Review your industrial practices regularly
As the business landscape changes, you must review your practices regularly to ensure you’re still following best practices. You can show your stakeholders that you’re committed to continuous improvement.
Reviewing your industrial practices can ensure that you use the most efficient and effective methods possible. It can also help you identify opportunities for improvement.
First, ask your stakeholders about their most recent views on sustainability and how you can continue meeting their needs. Understand what activities cause pollution, and you can develop strategies to mitigate or eliminate those impacts.
Additionally, keep an eye on new developments and technological advances that could help reduce your footprint further. Finally, communicate your successes (and challenges) to your stakeholders so they can see your progress.
Parting shot
Have a robust and well-documented process in place. Ensure that your stakeholders know this process and can provide input at various stages. Finally, present the ESG data in an easily understandable and digestible format.
By following these steps, you can build trust with your stakeholders and remain a credible company in the eyes of investors and the public.
