Why is digitalization of ESG reporting important?
ESG reporting is particularly aimed at investors and is a positive sign for corporate ethics. Better yet, it has become a regulatory requirement introduced by European Directive 2014/95/EU. This legal obligation is not without difficulties. To this end, its digitization is a better solution found in relation to the complexity of old approach. We come to you much more in detail in the rest of this article.
The challenge between subsidiaries
Due to legal compliance, subsidiaries challenge each other ESG reporting. Indeed, the UN Global Compact performs a compliance check against its principles. This is an issue that many international companies face. This is evident in the submission of subsidiaries to different regulations. These are their subsidiaries located abroad. At their level, each of them initiates monitoring practices. In addition to this, they establish variously structured data. The direct result is the difficulty for legal departments (even centralized ones) to comply with the requirements of regional, national or even global jurisdiction. But, when ESG reporting is digitized, it promotes compliance with international jurisdiction.
Centralizing data into an ESG solution
Building a one-stop reporting requires putting various media into action. For this purpose, the use of computer software is necessary. PowerPoint, Spreadsheets, Word... are software providing different formats of reports which is perfectly alongside reporting systems such as CRM, ERP. This allows to process and manage information. Digitizing with the extra-financial option also means opting for a single solution: centralization of approaches with ESG. All the subsidiaries and departments of the companies will have to opt for this tool to constitute their corporate supports. The objective is to make the data entry mode homogeneous. And that it will be so for the treatment and the reading of these last ones. One of the main objectives of this process is to save time. Professional cloud software to further facilitate communication within companies with a good digitalization to support.