Big Data and ESG
Why Big Data plays an important role in creating a strong ESG proposition?
What is ESG?
Environment, Social, and Governance (ESG) is a valuable factor in decision making towards the success of corporations, investors, and society. In businesses, ESG is used in identifying strategies and managing risks and opportunities. Whilst for the stakeholders, it is the basis of measuring the capability of corporations to bring positive changes and sustainability in the long term.
ESG covers an enormous volume of data stored accordingly to present valid and comprehensive information to investors and other stakeholders. At this stage, companies can take advantage of Big Data to create a strong ESG proposition that values the stakeholders and environment. From there, it is more likely for the company to deliver strong returns that will open vast opportunities. It will also shape them to be resilient in the present and future occurrence.
ESG is a stakeholder-centric approach that falls into three categories – Environment, Social, and Governance.
It is essential to value the environment in planning and performing operations. Taking the environment into consideration minimise the environmental risks as well as reduce the operating costs. With the proper management and analysis of Big Data, processes can be improved with efficiency while managing the environmental impacts. For instance, AMD aims to protect our planet against climate change by saving energy and reducing greenhouse gas emissions (GHG). This approach wouldn’t exist without extensive research about climate change and the overall process of their value chain. For over 25 years, AMD has been transparent with its environmental programs and initiatives through a yearly report which means they manage an enormous volume of data in order to present detailed information about its performance.
Social focus on the customers, employees, and community. Some companies promote diversity and inclusivity by having employees with different backgrounds and cultures. Whilst some focus on the wellbeing of their workforce and consumers to prevent labour discontent strikes and boycotts. Having a compelling socially responsible proposition will affect the company’s reputation and profitability. Big Data validates the social outcomes by telling the company’s journey how it thrives in achieving its responsible objectives.
Governance is primarily the internal procedures such as exercising the rights of shareholders, the company’s leadership, financial stewardship, transparency, employee safety and more. Governance forms the foundations in achieving an organisation’s environmental and social goals. This is where executives and board members will show how they manage risks and deal with the demands of the stakeholders. Corporate governance also indicates business ethics, management structures, and financial and accounting transparency. With accurate and credible Big Data, it is much easier for an organisation to develop sustainability and oversee the overall process which are valuable factors in attaining strategic and effective decisions.
ESG and Big Data play a vital role in an organisation. Both provide huge assistance towards the organisation’s growth. This includes creating effective marketing plans, developing sustainability initiatives, boosting productivity and efficiency, and managing risks and opportunities. Hence, they are equally essential in planning out a better strategy to achieve success. Let us tell this story for you.