________________________________________________________________________________________________________________________
Mastering ESG data
Andy Baillie shares a nuanced perspective on mastering ESG data to meet stricter requirements
Since 2021 , more companies have been embracing ESG targets , with nearly half of all firms and 62 percent of manufacturers actively pursuing sustainability goals . However , manufacturers face a unique hurdle : they must handle complex data while often lacking the advanced systems needed to respond quickly to changing reporting requirements .
This is where master data management ( MDM ) and continuous data governance become vital . They provide a framework for maintaining a consistent , unified view of data . Think of it this way : you wouldn ’ t report financial data without ensuring its accuracy , so why treat ESG data any differently ?
With the right tools in place , manufacturers can leverage their data to address key ESG challenges and opportunities . Let ’ s look at three important examples .
Using data systems for effective risk identification and mitigation
Accurate data helps manufacturers to gain insights into operational efficiency and regulatory compliance . Master data management facilitates this by eliminating data silos , thereby enhancing visibility and traceability across the entire supply chain . This allows manufacturers to access comprehensive data spanning the whole product lifecycle , from raw materials to final products and customer feedback .
Moreover , effective risk management must extend to the supply chain to address sustainability issues and prevent disruptions . Mastering data on third-party relationships plays a key role here , enabling manufacturers to track supplier and vendor activity , and identify ESG risks such as labor violations , environmental non-compliance , or unethical
14