Why ESG Data Management Is Now a Business Imperative
Imagine an exciting potential client has invited you to submit an RFP. Equipped with the latest and greatest product and service information, you begin to seamlessly sell your offering, confident in its likelihood of success. Until you reach a section that requests ESG data.
Sound familiar? RFPs and requests from existing customers for ESG data are on the rise. However, the sales and procurement teams receiving these requests aren’t necessarily equipped to respond, and the company may not even have the appropriate data. Although some companies have sustainability integrated across corporate functions, in many cases, it is still siloed, and information doesn’t always get shared across the organization. In other cases, companies are at the beginning of their sustainability journeys, making fulfilling requests for detailed data both intimidating and challenging.
With an increase in organizations requesting data across their supply chains to improve Scope 3 reporting, not being prepared with ESG data can lead to a loss of business and competitive edge. Having a data-driven sustainability strategy is rapidly becoming an expectation rather than a nice-to-have.
What Sustainability Data Are Companies Being Asked to Provide?
Some of the most common sustainability data requests businesses receive include:
- Greenhouse gas emissions
- ESG policies, ranging from Supplier Code of Conduct to Human Rights to Anti-Corruption
- Renewable energy use
- Waste reduction data
- SBTi targets and progress
While these represent the most common requests, we’ve seen a spectrum that includes detailed certification and ecolabel information, social audits, adherence to reporting frameworks such as CSRD, EPR compliance, business continuity, disaster response, and more. The volume and nature of information requests can be both overwhelming and time-consuming, leading to uncertainty and confusion.
How a Proactive Sustainability Strategy Accelerates Business Operations
Breaking Down Silos with Cross-Functional ESG Data Sharing
In many organisations, sustainability data is fragmented and spread across teams with no central source of truth. A proactive sustainability strategy prioritises gathering, measuring, and sharing sustainability data internally across siloes, which can save time while supporting business growth and strengthening existing customer relationships.
Strengthening ESG Policies to Build Customer Trust
Clearyst Advisory works with clients to measure and report on greenhouse gas emissions, develop and strengthen ESG policies, improve supply chain sustainability, and more. This has enabled our clients to be more confident and efficient in handling sustainability requests, leading to shorter response times and improved compliance.
"Working with Clearyst to strengthen ESG policies, develop a GHG baseline, and refine our sustainability initiatives has improved our ability to share our commitment with employees and customers. It's a win for the environment, a win for our team, and a win for the companies we serve.” - Wendy Laubach, Corporate Director of Contracts, Saf-Gard Safety Shoe Co.
Building the Right ESG Data Management System
Choosing the Right Tools for Your Company's Needs
It can be overwhelming to know where to start or how to centralize sustainability data that may be dispersed across teams. Companies can begin by determining the right tools to manage data, identifying which stakeholders should be involved, and creating a plan to address those gaps.
There are numerous potential solutions for ESG data organization, depending on the company’s size, maturity, and reporting requirements. Choosing the right tools to meet your company’s needs and establishing cross-functional workflows to manage data are critical to making ESG data management a long-term success, rather than scrambling every time a reporting need arises.
Making Sustainability Data Accessible Across Departments
Once the data management system is in place, communicating where the data is and how to access it across departments is critical to equip sales and procurement teams with the information they need to confidently respond to ESG data requests. For some clients, Clearyst has created a “sustainability data cheat sheet” to address the most common requests, saving time and providing a quick reference for teams.
Getting Started: Progressing on Your Scope 3 Reporting Journey
You Don't Need All the Answers to Make Progress
It’s likely you won’t have all the answers to every request, but don’t let that be a barrier to progress. Sustainability is a journey, after all, and most existing and prospective clients want to see where you are on the journey and where you’re going. Sharing data internally, developing a plan to address data gaps, and progressing on your ESG path are great places to start.
Key Actions to Improve ESG Data Readiness
To begin building a more responsive and data-driven sustainability strategy, companies should:
- Identify the right tools to centralise and manage sustainability data
- Determine which internal stakeholders need to be involved
- Map existing data gaps and create a plan to address them
- Establish cross-departmental workflows for ongoing data management
- Develop a quick-reference guide for sales and procurement teams handling ESG requests
How do you support your teams in responding to sustainability data requests? We’d love to hear your best practices. Not sure where to start? Connect with Clearyst Advisory today to begin your journey of responding to ESG-related customer data requests and RFPs with confidence.