There is nothing more inspiring than meeting and having a great conversation with people who are driven by the same passion. That is why Worldfavor could not miss the opportunity to participate at the digital conference ESG regulation, data, and reporting which was hosted by Informa.Around 40 speakers from different fields and countries gathered to talk about the future of sustainable business and shared their views on the current state of ESG reporting.
Even though there are no mandatory requirements or universal standards for completing and evaluating ESG reports, many companies find it convenient to measure their ethical and environmental impact with the help of ESG software.
ESG reporting is valuable for many reasons. First of all, it becomes a crucial criterion when it comes to attracting investors and stakeholders. Secondly, it helps to meet the high expectations and demands of modern society. Another reason is that a company’s ESG work can be an inspiration to other businesses to improve their sustainability work. Doesn’t it sound good? We believe it does!
Let’s take a peek at some insights we got from the conference:
ESG scoring and ratings vary between providers and sometimes do not give a clear picture as they use different interpretations of how to measure and track data. Tip – investors could use data and read reports directly from companies in order to see their actual environmental impact. The ESG report is a great tool in general, but you might need to check what metrics the report’s provider uses.
Who is driving the demand for transparency and disclosures? Sometimes the law is a driving force, but customers make a huge input into this, too. Take a look at Nike’s incredible statement on forced labor or H&M’s vision on climate. Modern customers realized that they actually can make a difference and that they have the right to demand adequate manufacturing for the products they buy. Therefore, companies must not only comply with the law in such statements but also take into account the consumer‘s perspective. Nike’s and H&M’s reports are great examples of how it can be done.
It is quite challenging to get the information on supply chains in a consistent structured way. A company follows up on its suppliers and reports results to its investors. In turn, some of the suppliers might have a hard time collecting data, because they usually deal with it manually in Excel spreadsheets. By the way, did you know that you can collect all supply chain data inWorldfavor Sustainable Sourcing solution?
Many panelists believe that agreeing on a baseline for disclosures is the first step forward for sustainable business worldwide. What information should be used in order to create a report? Which information is required from suppliers? How to track emissions not only on a company but also on a product level?
These and many other questions are still being discussed and hopefully, it won’t be long before there is a solution. We are looking forward to following and driving this conversation going forward.