Environmental, Social, and Corporate Governance

The Past, Present, and Future of EHS & ESG

To celebrate a milestone 25 years of success in EHS and ESG software development, we sat down with Locus President, Wes Hawthorne for a brief discussion. In this post, we ask him a series of questions highlighting the past, present and future of EHS and ESG.

1. What are the greatest challenges that environmental professionals are facing?

One of the persistent challenges we’ve seen for the past 25 years is that the responsibilities of environmental professionals are continually expanding. Previously, almost all environmental work was localized, with facility-level permits for air, water, waste, etc. That has expanded over the years to include new regulations and reporting requirements for sustainability, social metrics, and other new compliance areas, while the old facility-level programs still continue. This has led to more pressure on environmental managers to keep up with these programs, and increased reliance on tools to manage that information. That’s where Locus has always focused our effort, to make that ever-expanding workload more manageable with modern solutions.

2. What are the most interesting trends in EHS and ESG?

The current flood of interest in ESG is certainly notable as far as bringing corporate attention to the environmental field, as well as having requirements originate from the SEC here in the US. We have become accustomed to managing oversight from multiple regulatory bodies at the local, state, and federal level, but SEC would be a newcomer in our line of work. Their involvement will be accompanied by a range of new requirements that are common for the financial world, but would be unfamiliar to environmental staff.

Across other EHS fields, we are seeing increased demand for transparency in EHS functions. Overall, this is a positive move, as it brings more attention to EHS issues and develops a better EHS culture within organizations. But this also drives the need for better tools to make EHS information readily available across all levels of the organization.

3. What are the most disruptive technologies available today?

As far as technologies, the ones most likely to have significant impact in the environmental field are ones that don’t require a significant capital investment. Although there are definitely some practical advantages to installing smart monitoring devices and other new technologies, procuring the funding for those purchases is often difficult for environmental professionals. Fortunately, there are still many technologies that have already been implemented successfully in other fields, but only need to be adapted for environmental purposes. Even simple changes like using web-based software in place of spreadsheets can have a huge impact on efficiency. And we haven’t yet seen the full impact of the proliferation of mobile devices on EHS functions. We are still working on new ways to take advantage of mobile devices for data collection, analysis, and communication purposes.

4. What do you think are the biggest innovations of the last 25 years in our field?

We’ve seen a number of innovation milestones in the past 25 years, and while we didn’t invent SaaS, we’ve been largely responsible for adapting it and perfecting it for environmental purposes. One of the major innovations we’ve integrated into our products include online GIS tools where users can easily visualize their environmental data on maps without expensive desktop software. Another one was our fully configurable software platform with built-in form, workflow, and report builders tailored for environmental purposes, which allows anyone to build and deploy environmental software applications that exactly match their needs. There have been many other innovations we’ve incorporated into our software, but these two stand out as the most impactful.

5. Where do you see Environmental and ESG reporting in the future?

More and more, we are seeing all types of reporting being converted into pure data exchanges. Reports that used to include regulatory forms and text interpretations are being replaced with text or XML file submittals. This transition is being driven largely by availability of technology for EHS professionals to generate and read these files, but it is also promoted by regulatory agencies and other stakeholders receiving these reports. Stakeholders have less time to read volumes of interpretive text, and are becoming more skeptical of potential bias in how facts are presented in text. These are driving the need for more pure data exchanges, with increasing emphasis on quantifiable metrics. These types of reports are also more readily compared against regulatory or industry standards. For reporters, lengthy corporate reports with volumes of text and graphics are becoming less common, and the success of an organization’s programs will be increasingly reliant on robust data sets, since ultimately only the data will be reported.

6. What has been the key reason for Locus’ success for the past 25 years?

There are actually a few that immediately come to mind. One reason is the nature of our continually evolving products. By providing our solutions as SaaS, our software adapts with new environmental requirements, and with new technologies. If our software was still the same as it was 25 years ago, it simply wouldn’t be sufficient for today’s requirements. Since our software is updated multiple times each year, it is difficult to notice the incremental changes, but they can be readily seen if you compare today’s software with the original in 1997. And we’re committed to continuing the development of our products as environmental needs change.

The other primary reason for our success is our excellent staff and the environmental expertise we bring to our customers. We simply could not provide the same level of support without our team of environmental engineers, scientists, geologists, chemists, and an array of others. Having that real-world understanding of environmental topics is how we’ve maintained customer relationships for multiple decades. And our software only has value because it is maintained and operated by staff who appreciate the complexity and importance of environmental work.

Mr. Hawthorne has been with Locus since 1999, working on development and implementation of services and solutions in the areas of environmental compliance, remediation, and sustainability. As President, he currently leads the overall product development and operations of the company. As a seasoned environmental and engineering executive, Hawthorne incorporates innovative analytical tools and methods to develop strategies for customers for portfolio analysis, project implementation, and management. His comprehensive knowledge of technical and environmental compliance best practices and laws enable him to create customized, cost-effective and customer-focused solutions for the specialized needs of each customer.

Mr. Hawthorne holds an M.S. in Environmental Engineering from Stanford University and B.S. degrees in Geology and Geological Engineering from Purdue University. He is registered both as a Professional Engineer and Professional Geologist, and is also accredited as Lead Verifier for the Greenhouse Gas Emissions and Low Carbon Fuel Standard programs by the California Air Resources Board.

Want to discuss EHS and ESG solutions with our product specialists? Contact us today!

The Locus Technologies ESG Survey Tool

The Locus Technologies ESG Survey Tool enables users to email surveys and questionnaires directly from Locus to their supply chain. This is achieved without having to create usernames and credentials those receiving surveys.

When surveys are issued, the tool generates a secure link to each email recipient. Email recipients click the link, respond to the survey or questionnaire (without having to create a Locus username/password), and the data will be captured within Locus software for ESG purposes. Recipients of the link only receive access to their survey form, and nothing else in the system, and the links expire within a prescribed timeframe to further strengthen security.

The survey tool securely streamlines data collection from external entities who would traditionally never be given access to the system, including suppliers, vendors, sales channels and consultants. Once collected, the data can be immediately be used for ESG calculations and reporting.

Want to learn more about the Locus ESG Survey Tool? Reach out to our product specialists today!

ESG: Why Uptime of SaaS Vendors Matters

In a Software as a Service (SaaS) delivery model, service uptime is vital for several reasons. Besides the obvious of having access to the service over the internet at any given time and staying connected to it 24/7/365, there are additional reasons why service uptime is essential. One of them is quickly verifying the vendor’s software architecture and how it fits the web.

Locus is committed to achieving and maintaining the trust of our customers. Integral to this mission is providing a robust compliance program that carefully considers data protection matters across our cloud services and service uptime. After security, service uptime and multitenancy at Locus come as a standard and, for the last 25 years, have been the three most essential pillars for delivering our cloud software. Our real-time status monitoring (ran by an independent provider of web monitoring services) provides transparency around service availability and performance for Locus’ ESG and EHS compliance SaaS products. Earlier I discussed the importance of multitenancy in detail. In this article, I will cover the importance of service uptime as one measure to determine if the software vendor is running genuine multitenant software or not.

Service Uptime

If your software vendor cannot share uptime statistics across all customers in real-time, they most likely do not run on a multitenant SaaS platform. One of the benefits of SaaS multitenancy (that is frequently overlooked during the customer software selection process) is that all customers are on the same instance and version of the software at all times. For that reason, there is no versioning of software applications. Did you ever see a version number for Google’s or Amazon’s software? Yet they serve millions of users simultaneously and constantly get upgraded. This is because multitenant software typically provides a rolling upgrade program: incremental and continuous improvements. It is an entirely new architectural approach to software delivery and maintenance model that frees customers from the tyranny of frequent and costly upgrades and upsell from greedy vendors. Companies have to develop applications from the ground up for multitenancy, and the good thing is that they cannot fake it. Let’s take a deeper dive into multitenancy.

An actual multitenant software provider can publish its software uptime across all customers in real-time. Locus, for example, has been publishing its service uptime in real-time across all customers since 2009. Locus’s track record speaks for itself: Locus Platform and EIM have a proven 99.9+ percent uptime record for years. To ensure maximum uptime and continuous availability, Locus provides redundant data protection and the most advanced facilities protection available, along with a complete data recovery plan. This is not possible with single-tenant applications as each customer has its software instance and probably a different version. One or a few customers may be down, others up, but one cannot generally aggregate software uptime in any meaningful way. The fastest way to find if the software vendor offers multitenant SaaS or is faking it is to check if they publish online, in real-time, their applications uptime, usually delivered via an independent third party.

Legacy client-server or single-tenant software cannot qualify for multitenancy, nor can it publish vendor’s uptime across all customers. Let’s take a look at definitions:

Single-Tenant – A single instance of the software and supporting infrastructure serves a single customer. With single-tenancy, each customer has their independent database and instance of the software. Essentially, there is no sharing happening with this option.

Multitenant – Multitenancy means that a single instance of the software and its supporting infrastructure serves multiple customers. Each customer shares the software application and also shares a single database. Each tenant’s data is isolated and remains invisible to other tenants.

A multitenant SaaS provider’s resources are focused on maintaining a single, current (and only) version of the software platform rather than being spread out in an attempt to support multiple software versions for customers. If a provider isn’t using multitenancy, it may be hosting thousands of single-tenant customer implementations. Trying to maintain that is too costly for the vendor, and sooner or later, those costs become the customers’ costs.

A vendor invested in on-premise, hosted, and hybrid models cannot commit to providing all the benefits of an actual SaaS model due to conflicting revenue models. Their resources will be spread thin, supporting multiple software versions rather than driving SaaS innovation. Additionally, suppose the vendor makes most of their revenue selling on-premise software. In that case, it is difficult for them to fully commit to a proper SaaS solution since most of their resources support the on-premise software. In summary, a vendor is either multitenant or not – there is nothing in between. If they have a single application installed on-premise of customer or single-tenant cloud, they do not qualify to be called multitenant SaaS.

Before you engage future vendors for your enterprise ESG reporting or EHS compliance software, assuming you already decided to go with a SaaS solution, ask this simple question:

Can you share your software uptime across ALL your customers in real-time? If the answer is no, pass.

Multitenancy Explained

And if the vendor suddenly introduces a “multitenant” model (after selling an on-premises or single-tenant software version for 10+ years), who in the world would want to migrate to that experimental cloud without putting the contract out to bid to explore a switch to well established and market-tested actual multitenant providers? The first-mover advantage of multitenancy is a considerable advantage for any vendor. Still not convinced? Let me offer a simple analogy to drive home the point as to why service uptime and multitenancy matter: Tesla vs. Edison–War of Currents.

The War of Currents was a series of events surrounding the introduction of competing electric power transmission systems in the late 1880s and early 1890s that pitted companies against one another and involved a debate over the cost and convenience of electricity generation and distribution systems, electrical safety, and a media/propaganda campaign, with the leading players being the direct current (DC) based on the Thomas Edison Electric Light Company and the supporters of alternating current (AC) based on Nikola Tesla’s inventions backed by Westinghouse.

With electricity supplies in their infancy, much depended on choosing the right technology to power homes and businesses across the country. The Edison-led group argued for DC current that required a power generating station every few city blocks (single-tenant model). In contrast, the AC group advocated for a centralized generation with transmission lines that could move electricity great distances with minimal loss (multitenant model).

The lower cost of AC power distribution and fewer generating stations eventually prevailed. Multitenancy is equivalent to AC regarding cost, convenience, and network effect. You can read more about how this analogy relates to SaaS in the book by Nicholas Carr, “Big Switch.” It’s the best read so far about the significance of the shift to multitenant cloud computing. Unfortunately, the ESG/EHS software industry has lagged in adopting multitenancy.

Given these fundamental differences between different modes of delivering software as a service, it is clear that the future lies with the multitenant model.

Whether all customer data is in one or multiple databases is of no consequence to the customer. For those arguing against it, it is like an assertion that companies “do not want to put all their money into the same bank account as their competitors,” when what those companies are doing is putting their money into different accounts at the same bank.

When customers of a financial institution share what does not need to be partitioned—for example, the transactional logic and the database maintenance tools, security, and physical infrastructure and insurance offered by a major financial institution—then they enjoy advantages of security, capacity, consistency, and reliability that would not be affordably deliverable in isolated parallel systems.

Locus has implemented procedures designed to ensure that customer data is processed only as instructed by the customer throughout the entire chain of processing activities by Locus and its subprocessors. Amazon Web Services, Inc. (“AWS”) provides the infrastructure used by Locus to host or process customer data. Locus hosts its SaaS on AWS using a multitenant architecture designed to segregate and restrict customer data access based on business needs. The architecture provides an effective logical data separation for different customers via customer-specific “Organization IDs” and allows customer and user role-based access privileges. The customer interaction with Locus services is operated in an architecture providing logical data separation for different customers via customer-specific accounts. Additional data segregation ensures separate environments for various functions, especially testing and production.

Multitenancy yields a compelling combination of efficiency and capability in enterprise cloud applications and cloud application platforms without sacrificing flexibility or governance.

Want to learn more? Reach out to our product specialists today.

Selecting ESG Software? Watch out for these 7 Red Flags

One of the biggest recent trends we have seen with novice ESG providers (both startups and major software providers new to the field) is a lack of substantial software tools presented. What is lacking is covered up by grandiose statements about the efficacy of their options. These statements are so vague that they could cover anything if you switched out references to ESG with any other nouns, since these providers don’t show their tools transparently.

Here are seven red flags to be aware of when selecting ESG software:

These providers prominently share statements and statistics about the current ESG climate, without any offering of how their software fits into the picture. This is a major ‘tell’ that someone is jumping on the ESG bandwagon without adequate expertise or software tools.
There is a lack of explanation about how their tools directly improve your ESG program. There is no mention of their dashboards or reporting options or other integrated tools. A seasoned software provider will happily share the specifics of what they offer.
You’ll find over-the-top flashiness on their website, but there are no software previews to be found. If they’re not showing an example of their software, it may be because it lacks functionality, or is theoretical.
Their site is filled with buzzwords. They will talk about reaching net-zero, about how their software is expert-led and data-driven. They will offer no insight as to how they meet these goals.
They will shy away from offering demonstrations. Instead, they will seek to have conversations where they make lavish promises about what their software will be able to do in the future. They may be quick to offer a PowerPoint presentation, but you’ll find that many organizations are reluctant to show their software in action. You deserve to see the software you intend to purchase.
No case studies or current customers can be found. If there’s not an example of their software in use, then it may not be worth exploring, or it may not exist.
If an ESG software provider has grown by acquisition, there are likely issues with software integration and staffing knowledge/support for the product. And if they’re owned by investors, it’s inevitable that they’re being packaged to sell, and they’ve raised prices to meet the needs of the investor.

So, what should you look for in an ESG Software Solution instead?

When selecting an ESG software solution, don’t waste your time with something that either isn’t functional or doesn’t exist. More importantly, your software should have a long track record of usability and be backed by years of expertise. Locus ESG software is proven and is a vital part of the Port Authority of New York and New Jersey’s Clean Construction Program. It also helps Del Monte Foods meet their sustainability goals by improving analyzation and forecasting.

Want to learn more? See it for yourself. Reach out to our product specialists today.

Embodied Carbon in the Construction and Building Operations Industry

When we look at all the new construction in the next 20 years, we see the critical role embodied carbon plays. The world urgently needs to address carbon emissions from buildings and construction, constituting almost 40% of global carbon emissions. Of those total emissions, building operations are responsible for 28% annually, while building materials and construction (typically referred to as embodied carbon) are responsible for an additional 12% annually.

The construction industry is the world’s largest single industry. Oxford Economics estimates the global construction market at $10.7 trillion in 2020. The market is expected to grow by $4.5 trillion between 2020 and 2030 to reach $15.2 trillion.

Unlike operational carbon emissions, which can be reduced over time with building energy upgrades and the use of renewable and nuclear energy, embodied carbon emissions are locked in place upon completion of construction. The owners and construction industry must handle embodied carbon now if we hope to achieve climate change goals by target dates. Embodied carbon typically precedes Scope 1, 2, and 3 emissions and should be added to those for any new construction.

Achieving zero embodied emissions will require adopting the principles of reusing, reducing, and sequestering, including retrofitting existing buildings, using recycled materials, and designing for deconstruction. Reducing means material optimization and the specification of low to zero carbon materials. Sequester means including the design of carbon sequestering sites and the use of carbon sequestering materials.

Just three materials – concrete, steel, and aluminum – are responsible for 23% of total global emissions (most of the materials used in the built environment). Concrete is the second most-consumed substance on Earth after water. Overall, humanity produces more than 10 billion tons, about 4 billion cubic meters of concrete and cement per year, or about 1.3 tons for every person on the planet, more than any other material, including oil and coal. The consumption of concrete exceeds that of all other construction materials combined. Making modern cement and concrete has a heavy environmental penalty, being responsible for 5% or so of global carbon emissions. And yet, most of those emissions are not accounted for during regular carbon reporting protocols. Steel and aluminum are not much different.

All companies that want to be credible with their carbon reporting need software tools for embodied carbon tracking and management. For this reason, Locus has developed a SaaS application to manage and report embodied carbon data in real-time during construction projects. The Locus Embodied Carbon app, part of the ESG toolset, advances environmentally friendly infrastructure design and increases the ability to track and reduce emissions before being built in the new structure forever.

Locus’s Embodied Carbon management software automates carbon emissions management throughout the design and construction processes. It is one of the most ambitious real-time carbon management software programs in the US. Locus Embodied Carbon app helps site owners, construction companies, and the supply chain reduce embodied carbon from on-site construction activities and reduce air pollution from construction activities.

Locus Embodied Carbon application combines the advantages of Locus Platform’s multitenant SaaS with its powerful configuration tools and APIs that, for example, stream carbon data from construction equipment to online software. The construction industry now has precisely the ESG software solution they need to fit their business processes for the low carbon construction program management to incorporate other EHS compliance and Sustainability data on the same unified platform in the future.

Don’t Trust Your ESG Reporting to Just Anyone

Is ESG the new gold rush? Some tech giants and startups seem to think so. With each passing day, more and more software providers throw their hat into the burgeoning ESG ring, hoping to cash in. While it’s perfectly reasonable for these companies to seek out profitable endeavors, most of those companies have limited real-world experience with ESG reporting and software. You may want to think twice about trusting your critical ESG reporting to someone looking to ride the wave toward a quick buck.

Locus has been developing and supporting ESG solutions for over two decades, before the ESG acronym ever made its way into headlines and boardrooms. In addition to the years of experience, Locus places great emphasis on domain knowledge, hiring experts in environmental science, engineering, sustainability, and mathematics to name a few. Our solutions are built and supported by these qualified experts, opposed to developers who are frantically cobbling together a solution that they can rush to market.

It takes years to develop a foolproof system for handling massive quantities of complex data. In a recent piece written by President of Locus, Wes Hawthorne, he delves into the importance of having accurate, audit-ready ESG reporting. Data quality and reporting accuracy have been pillars of Locus’ success since our founding in 1997.

Do more for your ESG program than applying a cookie-cutter tool meant to meet the bare-minimum needs of the many or an application that is new and untested, and unfit for your requirements. Our robust solutions help you manage impact, create reports with ease, and meet your ESG goals effectively.

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6 Ways To Get Data Into Your EHS System

Locus provides multiple methods to populate EHS, ESG, or any environmental data, including the following:

Integrations

Locus provides a full suite of REST API’s, and SDK that can be used to populate data from external data sources. Typical uses include utility data, CEMS, meter data and IoT data.

Surveys

Locus Survey tool enables you to issue survey questionnaires to people outside your organization, and enables them to securely and seamlessly respond directly into the survey form. Typical uses include supplier surveys, audits and customer questionnaires.

Mobile

User input forms can be optimized for input on a phone or tablet, which allows quick uploads of photos and also geotags your data so you can ensure it was collected at the right location.

Excel and Text Files

Locus provides a full suite of Excel upload tools that allow you to import data directly from Excel or CSV files. This option also allows you to work offline and re-sync your data later. Typical uses include laboratory data, periodic monitoring data and data migrations.

Manual Data

Like any system, Locus provides tools for users to directly enter data into the system. These include Locus sophisticated data validation tools which employs machine learning techniques to identify data entries which may be invalid, with visual indications of the expect range or ranges.

Email

Locus can be configured to directly read email input (as text) and place it into the system. Typical uses include instances where external users initiate a conversation, which then may be responded to from within the system, such as an inquiry, issue, or an incident report.

Contact us to learn more

Send us your contact information and a Locus representative will be in touch to discuss your organization’s environmental data management needs and provide an estimate, or set up a free demo of our enterprise environmental software solutions.

5 Keys to Navigating ESG

With sustainability practitioners strained to deploy limited resources internally to navigate the myriad of standards and frameworks to meet the growing appetite for environmental, social, and governance (ESG) information, we continue to ask, “Isn’t there an easier way to do this?” Anyone who has worked to align standards and frameworks, corral internal champions around disclosure requirements, and marry quantitative performance data with narratives on management approach, knows that this is no easy feat.

The uphill battle to integrate data and other systems is often complicated by trying to pull others along in the organization—regardless of where their hearts lie.

So how is it that we can focus in on what’s relevant and minimize the reporting burden on others?

At the risk of seeming to oversimplify the process, I’ll attempt to breakdown some of the concepts mentioned here as a means for peering through the gray. The following five points have been central to my years of guiding organizations through this process.

1: Navigating the myriad of standards and frameworks:

Not only are there the long-time warriors (the Global Reporting Initiative, CDP, and the Sustainability Accounting Standards Board now merged with the International Integrated Reporting Counsel labeled as the Value Reporting Foundation), there are also larger north star initiatives, like the United Nation’s Global Compact or Sustainable Development Goals, and even those that are industry specific, like the Global Real Estate Sustainability Benchmark. There are also the investor-driven ratings and rankings, supply chain initiatives, and mandates disclosure requirements that organizations must contend with. Not everyone is blessed with sustainability departments powered by specialists of all types. In fact, most are managed by 1-3 individuals who often juggle multiple roles until they can prove the importance of an integrated strategy and leverage additional support. In the end, standards alignment comes down to one person dropping all disclosure requirements into an excel spreadsheet to make sense of all that is needed. There is no harm in this. It is a recommended first step in trying to better understand the nuances between all that is asked and whether it is possible to pull data to meet various requirements. The goal eventually, of course, is to automate reporting against all applicable requirements. Usually companies start by developing a comprehensive list of all that they can disclose, either initially or in the future. The key is not to exclude areas that the company is unable to immediately disclose on, but to press the “pause” button and keep those items in the horizon as areas that should be revisited in the future. Instead, stating where one is in the journey to retrieve information and manage inherent risks, while providing data for what is possible, is recommended. In that, clear “omissions” or “exclusions to the boundary” should be noted.

2: Determining the qualitative vs. quantitative:

Be it labor standards, human rights, training and education, resource consumption or greenhouse gases, there are both qualitative and quantitative features to grasp and disclose an organizations’ impacts. Granularity is based on what the organization is trying to achieve by pursuing efforts in a certain area. Will the level of detail provide a sharper view of potential risks? Will the data enable decision-making? Will it demonstrate the level of transparency the organization is willing to provide to match disclosure among its peer group? Will it result in greater recognition or even, leadership status? By asking these questions, organizations can determine their priorities and narrow in on data tracking mechanisms to pull, house, and analyze detail. Keep in mind, however, taking inventory always presents surprises. Try not to go down a rabbit hole searching for data that doesn’t exist or isn’t relevant considering the larger footprint. Report on what is available and explain what is being accounted for, what is missing, and why.

3: Pull others along:

Frameworks, data, and the endless requests for disclosure are enough to make anyone question their sanity—let alone the ongoing education that is needed to bring others along the path towards greater sustainability. Up until about five years ago, the role of the sustainability champion was often a lone wolf in the organization who felt committed to the charge. Boards were not involved, and it was because few companies saw sustainability as a strategic imperative. Today, it’s no longer effective to go at this alone. Markets have begun to regulate this space: the fear of shareholder resolutions, and the inability to access capital due to a lack of demonstrated ESG commitments, risk management, and performance disclosure has catapulted the need to activate players across functions. Regardless of standard, framework, or reporting platform, governance is critical to ensuring that sustainability sticks. It’s not enough to simply describe the organizational and leadership structure, but to describe how and where sustainability or ESG risk management sits within and what the role of the Board is. The sustainability coordinator, or Chief Sustainability Officer’s structure the group to facilitate action. Constant education and hand holding is necessary to inform the working group on the rapidly changing landscape and what is needed to maintain a license to operate from the stakeholder perspective.

4: Minimize the reporting burden:

If it’s not clear by this point, all that matters when it comes to reporting is 1) performance data, 2) an explanation of management approach, and 3) a description of your processes undertaken to identify material matters and manage risks. Stories and imagery provide color but not an overview of what the organization is doing to manage impacts. Begin by structuring your website to highlight data. Embedd data from GRI, the SDGs, and/or SASB indexes as companies such as Ball Corporation, BlackRock, and Coca-Cola. All have focused more efforts on tangible reduction and reuse, rather than creating beautiful communication pieces. This allows them to focus time and resources on doing the work that matters.

5: Data collection:

As the saying goes, “what doesn’t get measured doesn’t get managed.” Pulling data from the ESG pillars and across functions often means that the data collection process tends to take shape like a patch work quilt. Utilizing an integrated, configurable system that can extract and consolidate data into a single source of truth allows companies to focus on results, rather than begging for data from sources internal and external to their organization. Where possible, automate the data collection process, and provide decision-making analytics that can be transferred to various disclosure platforms to streamline the process and further minimize the reporting burden.

Hopefully, these points will help reassure you that you’re on the right path. The reality is, there is no easy way. Many of the front movers know this all too well. Their approach has taken years to solidify. In addition to the 5 points listed above, try to remember that it is important to just get started. Improvements can be made over time and lessons aren’t typically learned through perfection.

[sc_image width=”150″ height=”150″ src=”23979″ style=”11″ position=”centered” disable_lightbox=”1″ alt=”Nancy Mancilla, ISOS Group”]

About the Author—Nancy Mancilla, ISOS Group

Ms. Mancilla is the CEO and Co-Founder of ISOS Group, a full services sustainability consultancy firm also recognized for its leadership as a GRI and CDP Certified Training Partner in the U.S. Since establishing the company, Nancy has orchestrated 300+ Certified Trainings, co-taught MBA programs, regularly serves as a conference guest speaker and thought leader on the non-financial reporting process. In addition to educational services, ISOS Group provides organizations of all types with sustainability assessments, reporting guidance and external assurance.

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Getting Started With ESG Is Less Daunting Than You Think

One of the most frequent questions we get asked when it comes to ESG is, “Where do I begin?”. For many companies, the process of getting started with a new ESG program is the most difficult step. With nearly 1,700 frequently evolving ESG reporting protocols available, it can be daunting just to determine where to begin. This uncertainty associated with ESG reporting can unfortunately paralyze any progress for several organizations. The good news is that ESG doesn’t have to be an ‘all or nothing’ effort. In fact, getting started is a simple and straightforward process.

Regardless of what ESG reporting program you choose (or eventually choose), there are many common elements that can form the basis of your organization’s ESG program. Although social and governance KPIs have been undergoing rapid evolution recently, environmental KPIs have been comparatively stable. Environmental KPIs tend to be quantitative with established calculation methodologies, whereas the definitions and determinations as to what is important regarding societal and governance factors and how to measure them are still being evaluated globally. Considering this, many companies elect to start their ESG reporting program using monitoring and collecting environmental data.

Additionally, almost all reporting programs include the concept of a baseline, or a time period against which future ESG metrics are compared. Developing the baseline requires a good understanding of your organization’s current ESG performance, which of course requires a good set of data. Universal data that is required for any ESG reporting program includes data on greenhouse gas, water quality and consumption, waste, and energy consumption. The bedrock of an ESG program starts with the collection, management, and reporting of these data. This information can also help to inform further decisions for your ESG program, including which framework is most appropriate for your organization.

As part of this effort, you should make sure you are collecting and calculating your ESG metrics with software that supports the required complexity of environmental data. Often the companies who suggest a turnkey solution to ESG reporting are not only lacking in social and governance data, but are woefully underprepared and unequipped to handle environmental data as well. With over 25 years of experience in creating software for environmental reporting, Locus Technologies is equipped to help organizations collect and report ESG data in a way that others aren’t.

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Combat Green Skepticism with Accurate ESG Data

Greenwashing, or the presenting of misinformation to create a sustainable image, is common among organizations. While many consumers may not be aware with the term greenwashing, they are aware of how common it is. In fact, consumers are so aware of this trend that they’re overwhelmingly skeptical of all organizations presenting themselves as sustainable. Four out of every five consumers have expressed skepticism of organizations claiming to be sustainable. So, how does your company express your sincere desire to take steps that are sustainable for the environment? With accurate and transparent data.

With 2/3 of consumers seeking out companies that emphasize sustainable practices, the temptation to greenwash is certainly enticing. Sometimes it comes in the form of making irrelevant claims, like saying a product is free of something that is banned (like CFCs). Other times it comes in the form of half-truths, like saying that a product is sustainably sourced, despite the manufacture of the product being unsustainable or harmful to the environment. Any way you look at it, the demand for sustainable products is so high, as is the temptation to greenwash. The truest, and least disputable way to combat greenwashing is by collecting and reporting your data accurately.

Sustainability is now a broad umbrella term that encompasses not only environmental practices, but social and corporate governance as well, better known as ESG. This broadness reflects a change in consumer attitudes from generation to generation, perceiving more than environmental practices as important while holding environmental practices to the microscope. In fact, over 75% of Gen X consumers say that they have to trust a brand before purchasing from them, and over 85% of Millennial and Gen Z consumers say they same. This trust encompasses everything from the use of organic ingredients to company wellness practices, and is reinforced with buying practices. To do environmental, social, and corporate governance right, organizations have taken a data-first approach.

With Locus Technologies, you can take concrete steps towards achievable ESG goals. By taking a fully-digital approach, your organization can make the transformation by maintaining full visibility of raw sustainability data, calculations, and other factors, and also keeping data easily accessible and traceable. Reports are fully traceable back to the source, and are indisputable, allowing for increased trust from consumers or anyone else who has a stake in this information. Given that 7/10 consumers are willing to pay a premium to sustainable-minded companies who are fully transparent with their efforts, this move can provide a significant return on investment in the short term.

The benefits of data centralization also go beyond combatting greenwashing. A fully-digital and streamlined process will improve your ability to handle the data appropriately, and will ease any auditing and reporting responsibilities moving forward, making the entire process cheaper and faster.

With brand loyalty and purchasing decisions being reliant on sustainable decisions, the move to accurate and transparent data management is key. By implementing Locus Technologies ESG software, your organization can employ cutting-edge solutions to combat greenwashing by promoting your sustainability goals and actions transparently and accurately.

Tag Archive for: ESG

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1: Navigating the myriad of standards and frameworks:

2: Determining the qualitative vs. quantitative:

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