Why ESG Technology is Beneficial

Environmental, social and governance (ESG) factors weigh heavily into the investment decisions of some of the world’s largest companies, so it makes sense to do everything you can to have ESG policies and procedures in place if you’re a business owner trying to seek investments. ESG technology makes it easy for companies to adhere to policies and procedures related to ESG, and many benefits come along with implementing these technologies.

Below are three reasons why your business should consider utilizing technology for ESG:

Tracking and Monitoring

When you rely on technology to keep up with your company’s ESG efforts, you have the chance to track and monitor progress. This is important for accountability and to ensure that everyone in your organization is upholding the ideals and values outlined in your ESG policies.

Technology also makes it easier to communicate changing standards without the need to issue multiple memos. Everyone in your organization can also use technology for ESG to take standardized training and document their completions.

Reporting

One of the biggest components of any ESG program is reporting. Many investment firms want to see the actions taken by brands they are considering for investments, and technology for ESG makes reporting easier.

Some ESG tech automatically issues reports based on key performance indicators, and this data can be released publicly to show the efforts your brand has made to uphold ESG ideals. Reports can also be automatically sent to investors to show that a brand is abiding by set terms for continued funding related to ESG.

Refining Policies

ESG tech is also beneficial in that it can help your company refine its policies. Because this technology tracks progress made on ESG initiatives, the results of such tracking can show where policies are successful and where additional efforts need to be made.

This can also be helpful if a potential investor is concerned about ESG performance. When you’re able to show that concerns are being addressed and policies are being refined, these challenges may not become impediments to receiving funding for growth and further investing.

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