Recent extreme climate conditions have set the global alarm ringing on sustainability issues. Business stakeholders like investors are on the hunt for responsible and ESG-compliant companies. As per a recent PWC report,
● With a projected compound annual growth rate (CAGR) of 12.9%, ESG assets are on pace to constitute 21.5% of total global AuM in less than five years
● Thus with the prospect of higher returns, investors surveyed are willing to pay for ESG performance – three-quarters, 78%, say they would pay higher fees for ESG funds
● The race is on for fund managers to shift allocations and retrofit existing funds to keep pace with investor expectations
Even customers are increasingly inclined to choose sustainable brands. Robust ESG reporting can be an ffective tool to get stakeholder attention and interest.
In the current complex and connected global operations, large enterprises are looking for ways to reconfigure their operating model and deploy and convey a compelling narrative by considering their entire supply chain on E, S and G parameters.
How are companies managing ESG reporting?
In the journey of ESG compliance, large enterprises have systems in place to automate ESG data collection, entry and reporting. However, the small and medium-sized businesses that are often suppliers to large global enterprises, rely on manual processes to manage the same. These are time-consuming, prone to human errors and expensive in the long run
Even the systems in use by enterprises have evolved - from the older on-premise, investment-heavy and non-scaleable systems to Cloud-based ESG solutions. These have brought in cost-effectiveness and scalability in ESG reporting.
Large enterprises seeking to partner with ESG-focused SMBs can benefit by encouraging their SMB suppliers to adopt such SaaS-based ESG reporting tools.
A Closer Look at the Capabilities of Cloud-Based ESG Reporting Tools When deployed by large enterprises across their supply chain, cloud-based SaaS ESG reporting tools like Treeni’s resustainTM SMB offer many benefits:
● Streamline ESG data collection and data management ● Enable efficient analysis and ESG reporting including CDP, Ecovadis etc.
There are several benefits that enterprises stand to gain with the capabilities of SaaS-based ESG reporting platforms like Treeni’s resustainTM SMB. These can add considerable value to the efforts of large enterprises aiming to partner with ESG-focused SMB suppliers:
● The Benefit of Efficiency and Accuracy by Efficient Data Collection
SaaS-based tools enable efficient data collection and consolidation from various internal and external sources. With automated collection, quicker data processing and real- time data updates, cloud-based ESG reporting tools make ESG data more accessible and readily available for analysis.
● Competitive Advantage, Better Decision Making and Reputational Benefits by
a. Detailed Data Assessment and Analysis
With data collected efficiently, the built-in standard templates and customizable dashboards in SaaS-based solutions like resustainTM SMB make it easier to assess the data and derive data-driven insights
b. Performance Benchmarking
Performance benchmarking is the fundamental way to mark a company against industry standards. They are also an effective way of identifying and choosing SMBs that outperform their peers in ESG performance. Thus enterprises can benefit their business and encourage SMBs to benchmark themselves for criteria for their selection
● Better Transparency and Employee Value by Standardised Reporting
The reporting templates included in resustainTM SMB facilitate adherence to the required frameworks/standards that enterprises will typically need from their suppliers or when adding new suppliers.
● Augmenting ESG Reporting with Treeni’s Managed Services
In addition to streamlining ESG reporting with resustainTM SMB, Treeni offers an array of managed services that make it easier for large businesses to ensure their supply chain is entirely ESG-compliant. The different ways in which Treeni's managed services can augment ESG reporting through resustainTM SMB are:
○ Managing SMB supplier sustainability data including energy, water, waste etc. ○ Setting up and providing access to analytics and CXO dashboards ○ Manage performance, tracking against set goals & targets ○ Support for decision making including investment to achieve goals ○ Manage digital marketing initiatives that build a reputation based on ESG excellence ○ Manage to report to specific compliance or customer-based requests such as BRSR, EcoVadis, CDP etc.
SMBs are often more sensitive towards the cost of such SaaS-based platforms. It becomes a pain point even for large enterprises when they consider deploying reporting on a larger scale for their SMB suppliers. The affordability of resustainTM SMB makes it a valuable investment that addresses the demands of important customers and enables effective stakeholder engagement including those with investors and employees.
The Bottom Line
A tech-enabled single platform can enable large entities to manage their entire supply chain ESG compliance. Not only do such solutions save time by offering data management and assessment for different frameworks in one place, but they also enable standardized data collection for future scalability, which makes it a beneficial, cost-effective investment. The automation process will only take enterprises one step further to keep pace with the evolving ESG reporting landscape.
Large-scale supply chain compliance, sponsored by the larger enterprise or in collaboration with suppliers, is the quickest way to achieve measurable impact. Here is where the affordability of resustainTM SMB can be a game changer. Invest in resustainTM SMB today to make a quantifiable positive difference across your supply chain.