Findings From Proprietary ESG Research

The real state of ESG within corporations

The demand to collect and share Environmental, Social, and Governance (ESG) performance data is increasing from investors, boards, stakeholders, and consumers. This pressure to publicly disclose information will only increase as mandatory ESG reporting for public companies is expected in 2023. This scenario leaves companies unsure of how and where to start. 

Over the last four months, we’ve interviewed 50+ C-Suite leaders across multiple industries, both public and private, to better understand their challenges and frustrations. 

Our findings include:

  • Lack of a unified overall standard for ESG and sustainability reporting 
  • Gaps in diverse and sustainable vendor programs
  • Disparate/siloed data systems makes collaboration challenging
  • Missing programs or processes to help cross functional departments recognize progress (or lack thereof)
  • Inadequate task management and workflow management software for ESG data
  • Benchmarking is important but each company has their own self-selected peer group which varies from their traditional peers 
  • Lack of intuitive and user friendly ESG performance dashboards for company stakeholders no matter the role, from intern to CEO
  • Difficult to validate diversity of suppliers as many don’t have certifications
  • Clicking the “reporting checkbox” doesn’t lead to impactful actions or behavioral changes

Additionally, we conducted a recent LinkedIn poll and overwhelmingly data collection was the biggest gripe. 45% of LinkedIn poll responders cited data collection as the most frustrating followed by task management at 29%. 

For those reporting on sustainability and ESG company activities, data collection is the most common grievance. Information comes from varied software platforms, various internal departments and often in spreadsheets that contain incorrect and incomplete data. There is also a general lack of understanding from contributors on what is needed, why it’s needed, and how the information is beneficial to the company; all of which further exacerbates the issue around ESG data. 

Data collection is a labor sink for all parties. 

  • Reduce time chasing data with a data ingestion hub for all types of data sources 
  • Reduce time requesting and following up on actions with an integrated task management system 
  • Increase communication and efficiency within your organization with work flows and dynamic dashboards customized for the role of the contributor 
  • Most importantly, with all the information in one location, utilizing powerful data, analytics, and benchmarking to focus on the most important and impactful actions for your company to propel your ESG efforts

I’m sure this information comes as no surprise to most of you reading this article. No matter your role in the organization, the vranda ESG Operating System can make it easier, more efficient, and transparent to report on ESG and sustainability. Learn more by visiting our website and requesting a demo.

CSuite Results on frustrations of ESG Reporting