Businesses are required to produce a variety of reports detailing their activities, primarily for government and other regulatory bodies. Regular reporting is a key component of compliance, which the company needs to stay in business and avoid penalties. Of course, reporting is also a vital part of establishing trust in the organization, which is important for investors and public interest in transparency.

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ESG reporting software in particular helps companies to ensure that they meet requirements for certain aspects of their operations. By using ESG reporting software, businesses can increase their accuracy and efficiency on the way to meeting goals for sustainability.

What Is ESG Reporting?

ESG reporting is a series of potential reports that companies might make as a way of highlighting their environmental, social, and governance aspects. Government regulations may require businesses to make regular reports identifying their impacts on various social, governmental or environmental systems.

While reporting is often compulsory, companies find many benefits from ESG reporting as well. Investors often make decisions about where or how much to invest from the reports that the organization publishes. Regular, accurate reporting about the business’s operations and activities can build trust in the organization as a whole.

Benefits of ESG Reporting Software

Without software to create ESG reports, companies may not know which data to collect or how to synthesize it into useful information for regulatory bodies or the public. Business administrators may struggle to maintain compliance with laws and regulations, putting them at risk for audits and penalties. By choosing to use ESG reporting software, organizations avoid these problems and gain several benefits.

Streamlined Data Collection and Management

ESG reporting software can help a company streamline its data collection and management, as part of achieving larger goals for sustainability. Software provides a complete system that makes data collection simple. The software can tell users the scope of data needed for the report, and it integrates seamlessly with other systems.

Additionally, the software provides other benefits for data management. Users can generate reports in a short period of time, converting data collection into practical information and insights for the company. The automation of these systems provides the opportunity to generate reports in real-time, with data visualization and other key components of performance analytics.

Increased Reporting Accuracy

For companies that want to show their commitment to sustainability, as well as needing to meet government regulations on sustainability, reporting precision is key. ESG reporting software increases the accuracy of data collection and reporting by automating much of the process. Automation lessens the load by removing the requirement that human workers input the information, which also increases overall accuracy by removing human error.

Automated data collection and management also simplifies the reporting process, giving businesses the opportunity to expand their reporting capabilities. Much as companies would use a proxy statement design for regulatory reports, ESG reporting software provides an attractive package for important public information.

Improved Decision-Making

The improved data collection and management provided by ESG reporting software yields additional benefits for businesses that wish to make continual improvements. While reporting requirements may only come up once a year, companies can use the software to track their performance in real time. Administrators can determine if they are on-track to meet future targets. Ultimately, the long-term advantage of the software lies in better decision-making from major stakeholders. Aggregated data and collaboration help teams to adjust their processes and ensure that they meet the needs of the company as it works to reach sustainability goals.

Reporting is a routine part of business operations and one that helps to build trust in the organization. By implementing ESG reporting software as part of a greater plan to increase the company’s overall sustainability, business administrators can confirm that they meet government regulations and their own long-term plans.

Author bio

Adam Nguyen is Senior Vice President for Donnelley Financial Solutions, a global financial solutions company. He has many years of experience in the industry and focuses on the company’s financing activities and daily operations.

The post How ESG Reporting Software Can Help Companies Meet Sustainability Goals appeared first on Global Trade Magazine.