{"id":50475,"date":"2024-10-07T11:05:53","date_gmt":"2024-10-07T10:05:53","guid":{"rendered":"https:\/\/manufacturing-today.com\/?p=50475"},"modified":"2024-10-29T11:03:33","modified_gmt":"2024-10-29T11:03:33","slug":"how-esg-accelerators-are-turning-sustainable-changes-into-a-greener-bottom-line","status":"publish","type":"post","link":"https:\/\/manufacturing-today.com\/news\/how-esg-accelerators-are-turning-sustainable-changes-into-a-greener-bottom-line\/","title":{"rendered":"How ESG accelerators are turning sustainable changes into a greener bottom line.\u00a0\u00a0"},"content":{"rendered":"

Manufacturers are realizing the importance of ESG reporting within their business performance management strategies to create value for stakeholders. Sixty percent of UK businesses may already have long-term ESG targets, but there\u2019s a bigger business picture to be unlocked. How can manufacturers unlock new business growth opportunities with ESG data accelerators that will fast-forward ESG reporting?\u00a0<\/span>\u00a0<\/span><\/p>\n

ESG performance is key to global business investors, with 80 percent of C level executives and business investors saying that ESG strategies will contribute more to shareholder value in five years than today and investors are willing to pay ten percent more for organizations with positive ESG records. To improve their ESG records, manufacturers need the right expertise and IT software to obtain and interpret the required ESG data as without, they risk missing out on investment and business opportunities.<\/span>\u00a0<\/span><\/p>\n

Everything ESG \u2013 can it overcome today\u2019s manufacturing challenges?<\/span><\/b>\u00a0<\/span><\/h3>\n

So, what exactly is ESG reporting? It\u2019s the gathering and disclosing of data on a manufacturer\u2019s environmental, social, and governance activity. This data disclosure can be key to gaining the trust of key stakeholders. But with corporate compliance and risk management at the forefront of manufacturing organizations as the industry becomes more complex and geopolitical volatility increases, ESG reporting must be flexible for manufacturers to enable them to overcome these challenges to demonstrate their success.<\/span>\u00a0<\/span><\/p>\n

ESG strategies must be clearly set out and explain how they can be achieved to help the wider organization understand the key drivers, opportunities, and risks of becoming more sustainable.<\/span>\u00a0<\/span><\/p>\n

Say goodbye to fragmented data with advanced data collection tools<\/span><\/b>\u00a0<\/span><\/h3>\n

One of the biggest challenges that over 70 percent of companies face with their sustainability data is data fragmentation and a lack of comprehensive data. This is where advanced data collection systems can help manufacturers collect, analyze, and visualize their ESG data.<\/span>\u00a0<\/span><\/p>\n

Without regulations in place, many manufacturers need to start tracking data from different sources to meet future ESG regulations, as highlighted in a recent Deloitte report: Manufacturers \u201c\u2026 didn\u2019t set up their operations to gather this information\u2026 They didn\u2019t start projects expecting this data need, they don\u2019t have the track record, they don\u2019t have the systems.\u201d So, where does that leave ESG data tracking?<\/span>\u00a0<\/span><\/p>\n

Go green at the click of an ESG data accelerator button<\/span><\/b>\u00a0<\/span><\/h3>\n

Here\u2019s where manufacturers must look to implement autonomous technologies such as ESG data accelerators, IoT sensors, and machine learning to overcome these issues. These advanced tools allow manufacturers to gather ESG insights that measure and monitor their ESG reporting. Manufacturers can co-operate and share infrastructure to leverage stock data that optimizes total inventory, reduces over production, and consumption. But how can manufacturers pinpoint the exact areas for sustainable change?<\/span>\u00a0<\/span><\/p>\n

Data dashboards simplify ESG data and keep manufacturers on track<\/span><\/b>\u00a0<\/span><\/h3>\n

For ESG reporting to benefit manufacturers, a data dashboard is required to visualize and interpret data. This allows for strengths, weaknesses, opportunities, and threats to be identified along the manufacturing supply chain to ensure continuous improvement.<\/span>\u00a0<\/span><\/p>\n

Green fingered regulations<\/span><\/b>\u00a0<\/span><\/h3>\n

At present, the Companies Act is the only regulation in the UK that discloses ESG requirements, ensuring companies that have 500 employees, or exceed \u00a3500 million in annual revenue, report their energy usage and carbon emissions. But regulations are being introduced such as the Streamlined Energy and Carbon Reporting (SECR) and the UK Sustainability Disclosure Standards (UK SDS). So how can manufacturers get ahead of these new ESG regulations?<\/span>\u00a0<\/span><\/p>\n

Reporting tools such as ESG data accelerators can identify gaps in data and provide insights into how manufacturers can match the ESRS requirements.<\/span>\u00a0<\/span><\/p>\n

Internal and external stakeholders are calling for a greener future \u2013 act now!<\/span><\/b>\u00a0<\/span><\/h3>\n

Research shows over 30 percent of consumers would trust brands more if they have a positive and transparent supply chain. This is where an ESG strategy can help improve manufacturers\u2019 brand reputation and customer collaboration opportunities as customers are more willing to work with and buy from sustainable organizations.<\/span>\u00a0<\/span><\/p>\n

A recent global survey highlighted that internal stakeholders are pushing the green initiative too. Employees would rather work for an organization with a positive ESG profile \u2013 and this is where an ESG data accelerator service comes in. An effective accelerator can turn raw data into reportable data to help employees visualize their impact on sustainability efforts.<\/span>\u00a0<\/span><\/p>\n

What\u2019s not to love about going green?<\/span><\/b>\u00a0<\/span><\/h3>\n

Manufacturers should take note that investors are more willing to invest in a company committed to sustainability. From this additional funding, ESG reporting will improve and see a high return on investment in the long term. To not miss out on this business benefit, ESG data accelerator services must be seriously considered by manufacturers before their competitors beat them to it!\u00a0<\/span>\u00a0<\/span>\u00a0<\/span><\/p>\n

For a list of the sources used in this article, please contact the editor.\u00a0<\/span><\/i>\u00a0<\/span><\/p>\n

By Ian Kingstone<\/span><\/b>\u00a0<\/span><\/p>\n

Ian Kingstone is Director of Business Transformation Advisory Practice (Strategy & Growth) at Columbus UK. Columbus is a global digital consultancy headquartered in Denmark. For over 30 years, it has helped more than 2500 ambitious companies transform, maximize, and future-proof their business digitally. Columbus employs more than 1550 digital advisors and consultants focused on the manufacturing, retail & distribution, food & process, and life sciences industries.\u00a0<\/span><\/i>\u00a0<\/span><\/p>\n\n\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

Manufacturers are realizing the importance of ESG reporting within their business performance management strategies to create value for stakeholders. 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