What is the acronym ESG?

The “E” from Environment refers to the environment and includes considerations related to topics such as climate change, natural resources and waste management.
The “S” of Social includes everything related to the people a company relates to, such as human rights, workers’ rights, workplace safety, equal opportunities, etc.
Finally, the “G” for Governance refers to issues such as transparency, balance and information in the corporate context.

Sustainability is at the heart of everything and there are fewer and fewer opposing voices, as it is now clear to everyone that not taking this path would have irreversible consequences for the environment and society. And this is where ESG criteria come into play, which can not only influence a company’s ability to create long-term value, but also be more or less attractive to possible new generation investors.

2022 confirmed the growing interest in ESG issues and saw further fundamental steps in the formation of the regulatory framework destined to represent the basis of that transformation of the economy towards sustainable production models which will be able to provide a driving force to the entire process of transition. The framework of rules must be integrated into common business practices, investment choices and everyday habits.

In this scenario, there is growing evidence that sustainability and its integration into corporate strategic and action plans is not only good for the planet and people, but can also increase profitability. Numerous studies and analyzes confirm that the best performing companies from an ESG point of view are in fact the most solid ones, which have a lower probability of default and therefore a lower credit risk.

From our experience in recent years we see that reflections on ESG aspects are increasing not only in large companies but increasingly also among SMEs – often downstream in the supply chain of big companies.

And it is clear that sustainability is not a road that can be traveled alone; we have an increase in requests from our customers to support them in the development of projects with ESG criteria both from a consultancy and technological point of view.

Our approach is to bring sustainability into the corporate value stream and integrate sustainable practices into every aspect of their business model. This means that sustainability becomes a fundamental part of the corporate strategy and not a sideline.

To embed sustainability as a value stream in organizations, it is necessary to take a holistic approach involving all aspects of the business and transform ESG objectives into a managed project portfolio.

We carry out an effective analysis of the project portfolio by identifying those that are in line with the company’s ESG objectives and starting from risk analysis, model implementation and related monitoring workflows, we propose the correct methodologies and digital tools.

The analysis often shows that one of the biggest challenges for many organizations is the lack of data collection methods, reporting and related processes that can be solved by using digital tools suitable for measuring companies’ performance in terms of ESG.

Today, there are technology solutions on the market that help define a sustainability strategy, gather ideas, identify risks, manage compliances, monitor status and evaluate results – all in a single platform.

These are tools that aim to support the entry and management of highly sensitive information included in the company’s Sustainability Plan and divided up by project on the basis of contributions received from the various company divisions.

For example, they can be implemented to automatically feed the Database of Sustainability projects, capable of guaranteeing flexibility in functionality, data accuracy and an intuitive and functional graphical interface for the user at the same time.

Such data can be of a qualitative nature (such as, for example, the description of the project with the relative expected benefits, the impacts of the projects on the ESG Pillar, on the Macro Targets or on the SDGs, or information relating to the Ownership and the perimeter of competence or progress with respect to critical project milestones) and quantitative (such as, for example, KPIs in terms of Initial Value, Targets and Current Impact, or Economic-Financial data).

If you are interested in learning more, write to us and let’s have a coffee: info@digixteam.com