One of the main reasons some companies shy away from ESG sustainability reporting is costs. After an illustrious 2020, which was characterized by the COVID-19 pandemic, many firms are still struggling to get back on their feet. Now, all efforts are directed at rejuvenating product chains, implying that growing revenue flow might take some time before hitting pre-COVID levels. ESG reporting is one of the new requirements that you cannot simply wish away because every stakeholder is demanding it.
As more authorities, regional blocs, and other stakeholders increase demand for responsible operations; there is no way out when it comes to ESG sustainability reporting. This brings us to the big question, “Is there a way to correctly do ESG reporting affordably?” The answer is a resounding “yes,” and this post will highlight some expert tips that you can use.
Select Affordable but High-Impact Sustainability Activities
There are so many activities that you can undertake to promote sustainability. If you are on a budget or want to keep the cost low, it is a good idea to start with the inexpensive ones. During company review, you can identify these activities and make them part of the reporting topics. Here are some of the high-impact but low-cost activities to consider:
- Partial Shift to Renewable Energy Systems: If your facility is using a lot of energy, cutting them down can be an effective ESG activity. To do this, you might want to change the lamps to LED models for the facility. You might also want to train staff on the need for energy conservation through positive action, such as switching computers off when not in use.
- Product Development Changes: If your product is using materials that are not sustainable, a shift to better materials will not be expensive. This might be as simple as sourcing for a different supplier. For example, a company that makes high-end furniture might want to shift from wood to laminate.
- Influencing Suppliers to Shift to Sustainable Production: You can make a huge impact by simply rethinking the contract you have with suppliers. By asking suppliers to shift to sustainable operations could result in reducing emission rates by a huge percentage.
- Equipment Maintenance: If your production is poor because of inefficiencies of the company equipment, adopting a different model of maintenance might do the trick. Instead of using the reactive maintenance strategy, why not adopt predictive maintenance? This maintenance method can help you reduce energy consumption, increase production and profitability.
Make Sure to Have the Right ESG Reporting Software
This is perhaps the most important way to keep the cost low. If you opt to run ESG sustainability reporting manually, it will be a challenging and expensive task. For example, the team managing the process of sustainability reporting might need to only focus on it, meaning that their positions may require new employees. However, the process will be a lot easier and cheaper with ESG sustainability reporting software.
Sustainability management software allow you to integrate the process with the company management system for automated data collection. For example, you will not need to manually enter data on financial performance, staff appraisals, and HR development progress because the software will pull it out automatically from the system.
Again, ESG reporting software makes it possible to follow the reporting topics and even notify you when specific parameters have been surpassed. Finally, data analysis and report generation will be a lot easier with an appropriate app. The program does not just make the process simple but fun too.
When it comes to sustainability, do not consider it a burden for your enterprise. Rather, it is a process designed to add value and move the company forward. This is why you need smart actions, and the activities we have suggested above can get you started when working with a tight budget. Visit Diginex.com for the best ESG reporting programs, support, and expertise on sustainability.