Making the Transition to a More Responsible Business Model

Cority is a Business Reporter client.

Once seen as optional additions to business operations, sustainability and environmental, social and governance (ESG) initiatives are now vital to every company’s future growth. Organizations are no longer simply asking when a sustainability agenda should be integrated into planning, but how a robust and meaningful transition can be undertaken without the business being harmed. 

In recent years, investors have been clear that the ESG frameworks of their would-be prospects are central factors in determining the allocation of assets. And this isn’t just an ethical matter; climate change and related crises have become a defining factor in the long-term viability of businesses, and investors want their investments to reap returns well into the future. 

Are there significant risks involved in evolving business practices with changing demands? Isn’t there a chance that if a company shifts from a purely economic approach to business growth to one that incorporates social and ecological considerations, its growth will be significantly affected? For many companies, realizing ESG targets isn’t just about making tweaks here and there to limit energy and resource consumption and waste generation. There are supply chains to examine, communities to contemplate and the behaviors of the consumers buying and using their products to consider. Failure to carefully integrate sustainability into business strategy could introduce risk, increase costs and even threaten the long-term viability of an organization. 

Building the foundation to make an impact

Cority has helped many organizations transition into ESG and sustainability, and knows that a key factor for success is for businesses to develop a foundation of governance structures and tools to guide them through the process. These comprise policies, defined roles, processes and information systems that communicate and engage with employees and the business community, investors and regulators. These systems also enable organizations to collect and aggregate high-quality data to inform their decisions. 

Companies must engage internal and external stakeholders and align sustainability performance goals with expectations. It is also critical to improve access to information and data-gathering processes. Do companies have the data they need? Is the data detailed enough to allow insight into the operations where actions can have an impact? Is the data accurate? Can it be reported, audited, assured and trusted by stakeholders? 

Without such tools, processes and data, businesses cannot reliably determine which actions should be taken to meet the goals they and their investors have set out. And this will have knock-on effects. 

Changing employee and stakeholder demands

Beyond the increasing number of reporting requirements and regulations, such as the EU taxonomy for sustainable activities and the Sustainable Finance Disclosure Regulation (SFDR), numerous studies have shown that employees place great value on the sustainability credentials of potential employers. Surveys have shown that candidates are more likely to work for a company that has strong environmental policies, and having clear sustainability goals is proven to have a positive effect on employee retention. 

Within those findings lies another reality that businesses must acknowledge and act on: If the shift to more sustainable business performance is to be effective and long-lasting, it must become part of company culture. If employees are to fully participate, they need to feel that they are part of the process. Clear communication between management and staff about sustainability goals is therefore vital, and employees should know why changes are being made, how they are relevant to them and how they can influence performance. 

Centralizing data-driven decisions

With tools for employee involvement, stakeholder engagement, supplier outreach and reporting, Cority helps organizations collaborate, exchange information and tell their sustainability story both internally and externally. 

Cority’s Sustainability Cloud is central to its ability to steer businesses toward improved sustainability performance. A key value of the cloud technology is that it can streamline the aggregation of sustainability data through integrations, automated processes and simplified collection tools, enabling companies to gather, standardize, process and analyze the data needed for sustainability audits and action. 

Cority uses a range of tools to organize that data into a single, central source ensuring that it can produce consistent and streamlined reporting. It also organizes and analyzes operational data, helping businesses to identify operational changes that will improve performance and allowing them to trace their data from source to report. This comprehensive and accurate data is able to withstand rigorous financial audits. 

This centralization of data means that, for example, a large organization that identifies waste reduction as a strategic initiative can have a single system in which a range of disparate data points can all be brought together and analyzed; operation sites can be benchmarked and compared; sites with less desirable disposal methods can be identified and action taken; divertible waste streams can be detected; and purchasing decisions can be based on site-specific use. All this ultimately results in a reduced footprint and lower impact and cost. 

Meeting organizations where they are

Only if data is carefully organized for analysis, providing a holistic view of organization-wide performance, can effective sustainability action plans be developed and implemented. Employers can, for instance, provide targeted training for site operations that have weak points and need improvement. Footprints can be evaluated, environmental impact can be reduced and money can be saved. A company’s improved performance will quickly reach its stakeholders: employees, investors and consumers. 

Whether an organization is just getting started or working to advance an established sustainability program, the powerful and flexible Cority solution can meet companies where they are and evolve with them to support the long-term success and sustainability of their business.

Discover your pathway to sustainability management and ESG reporting success today.

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