As we have established earlier in this blog series, it’s no longer simply about the bottom line. Today’s consumers care deeply about who they are buying from, not just what they’re buying. More over, organizations need to make a positive impact on the world around them, but it can be difficult to know where to start. In this 5-part blog series, we will discuss how organizations can evaluate and improve their socioeconomic efforts using ESG. The fourth installation in the “What is ESG?” series, this article, will focus on the technology vendors that organizations must have in place in addition to the public ESG data providers to enable a transparent, accurate ESG program as it relates to governance.
What is ESG?
ESG stands for Environmental, Social, and Governance. These three factors consider the impact an organization has on itself, its customers and the community. In today’s climate, pun intended, adopting ESG measures is important for businesses of all sizes when considering future growth and profitability.
The complexity of the ESG market is apparent when one begins to uncover the number of vendors, system functions, and services required in each pillar. This is further complicated by the variety of reporting formats that are used. Goby does a nice job highlighting the different data providers for ESG in their data providers briefing.
Governance
The complexity of the ESG market is apparent when one begins to uncover the number of vendors, system functions, and services required in each pillar. This is further complicated by the variety of reporting formats that are used. Goby does a nice job highlighting the different data providers for ESG in their data providers briefing. The second installation in the “What is ESG?” series, this article, will focus on the technology vendors that organizations must have in place in addition to the public ESG data providers to enable a transparent, accurate ESG program.
The governance technology landscape, also referred to as Governance, Risk & Compliance (GRC), has been well developed and utilized by many of the large consulting providers such as EY, Deloitte, and KPMG for decades. The technology vendors in this space are typically aligned in vertical markets or horizontally in specialized focus areas. There are a few broad system providers like MetricStream and LogicGate that provide comprehensive systems for GRC.
Key System Functionality & Services
Governance, Risk & Compliance (GRC)
Policy Management
Change Management
Risk Management
Audit Management
Incident Management
Compliance Management
Notifications & Alerting
Dashboard & Reporting
GRC Market Landscape
ESG Technology Landscape
Looking holistically at ESG, the complexity of functions, systems, and vendors is obvious. This complexity has caused a handful of vendors to develop ESG focused applications. His landscape is developing quickly and contains many of the leading applications that previously focused on singular functionality. The ESG landscape can be simplified into consulting, technology and data analytics vendors.
Key System Functionality & Services
ESG Management & Reporting
Flexibility to Reporting Frameworks
Data Acquisition & Transformation
Executive Compensation Benchmarking
Monitoring & Reporting
Service & Support
ESG Vendor Landscape
While there is no shortage of ESG technology vendors on the market, companies need to find the perfect fit in order to make the greatest impact on their industry and the world around them. Each vendor operates differently and should be able to clearly communicate their processes and capabilities. In the next post, we’ll discuss CWE’s ESG approach to give you a better understanding of how an industry professional helps companies manage their ESG data.
Commenti