Solving Key ESG Compliance Issues

The trickiest challenges in ESG compliance challenge and how to resolve them?

Complying with ESG (Environmental, Social and Governance) norms is a requirement for global firms not only for business and regulatory reasons, but also to brandish a progressive reputation to target new age customers, unlock access to investor capital and mitigate climate risks, labour disputes and governance failures.

Though cost of compliance may not be a deciding factor, the process of adhering to various ESG reporting frameworks itself can be overwhelming and seem like a steep mountain to climb.

For example, one of the biggest challenges global firms face while implementing ESG practices is the collection and quality of data. ESG metrics require non-financial, qualitative and granular data which may not be readily available and requires deployment of dedicated resources and time.

Once the data is collected, it needs to be synergised, analysed and presented in easily digestible formats to enable faster decision making. Lack of real-time tracking and gaps in data can prove to be detrimental to the sustainability journey.

The other challenges in implementing ESG practices are:

⚠️ Lack of standardization: There are multiple frameworks (GRI, SASB, TCFD, etc) each of which have different approaches. Which one to follow and what reporting standards to adhere to can be nerve-wracking.
💰 Cost of implementation: Becoming sustainable is an exercise that reaps immense benefits in the long run but requires significant monetary investment for technology, process redesign and training.
🚚 Managing Supply Chain Challenges: Implementing ESG practices requires support from a globally diverse supply chain which only makes it seem more cumbersome and difficult.
🧑‍🏫 Lack of Expertise: Last, but not the least, this is a domain for specialists and that in-house expertise may not be readily available. Choosing the right partner is of paramount importance to avoid the risk of poor-quality implementation.

Why ESGHQ is the optimal solution to your ESG implementation needs

☁️ESGHQ is APA Engineering’s SAAS-based product on Azure cloud which helps you integrate ESG seamlessly into your business strategy.
🌍 We have partnered with multiple global companies to successfully transform their ESG implementation, help save money and resources, and offer reliable expert support.
⚡ For instance, ESGHQ helped a global energy management solutions firm streamline their ESG reporting and saved 40% costs (read case study).
📊 It makes data management easy by integrating various streams from internal and external sources through API into a centralized repository.
👥 It also enables collaboration between all stakeholders for data review and approval and provides extensive data analytics converting raw inputs into simple visualizations allowing for quick decision-making.
📃 It offers customizable reports based on your organisation’s needs based on the reporting framework. The software can auto-publish ESG disclosures on your firm’s websites with just a single click.
🕵️‍♂️ The supply chain challenges are met by an inbuilt supplier intelligence unit which identifies, assesses and monitors risks related to, for example, human rights or environment or labour issues. Supply chain due diligence reports can be generated by data collected through customizable questionnaires.