Unleashing Power of Data

Unleashing Power of Data | 61 [ POWER OF DATA TO FAST-TRACK ESG GOALS ] t arget s i nto execut i ves ’ performance reviews; ESG leaders have gone one step further and made these KPIs part of everyone’s success criteria across the business. This motivates the desired improvements and pushes the organization to improve how it tracks ESG. Apply the same rigor to ESG data that is dedicated to financial data: Regulators, i nves tor s , and bus i ness partners are, and wi l l be, scrutinizing ESG data; inmany organizations, auditors are getting involved to improve t he r i gor and hyg i ene . Businesses need to bring a higher degree of focus to ESG data management and reporting through dedicated improvemen t progr ams and partnering with IT and operations leaders. WAY FORWARD Data is the holy grai l of ESG mone t i z a t i on . I t c an he l p businesses to fast-track their ESG goals in a number of ways. First, data can be used to set targets and benchmarks. By tracking their progress over time, businesses can see how their efforts are impacting their ESG performance. This information can then be used to make necessary adjustments and ensure that they are on track to meet their goals. Second, data can be used to identify and manage risks. By understanding the ESG r isks that they face, businesses can develop strategies to mitigate these risks. Data can also be used to monitor the effectiveness of these mitigation strategies. Thi rd, data can be used to communicate ESG performance to s takeholders . By shar ing data on their ESG performance, businesses can demonstrate their commitment to sustainability and social responsibility. This can help to attract and retain customers, employees, and investors. How can businesses use data to fast-track their ESG goals: Overa l l , da t a i s a va l uabl e tool for businesses looking to fast-track their ESG goals. By collecting and analyzing data on their environmental, social, and governance performance, businesses can identify areas where they need to improve and make necessary changes. In addition to the benefits listed above, data can also be used to monetize ESGefforts. For example, businesses can sell their ESG data to third-partydatabrokers, who can then sell it to other businesses and organizations. Businesses can also use their ESG data to develop new products and services that appeal to ESG-conscious consumers. As the wor ld becomes more aware of the impor tance of ESG, businesses that are able to effectively collect, analyze, and monetize their ESG data will be at a competitive advantage. Dun & Bradstreet