Writing an ESG report is a complex process that requires accuracy, transparency, and up-to-date information. Technology has played and continues to play a crucial role in optimizing this process, helping businesses save time, enhance efficiency, and ensure the quality of reporting.
1. The benefits of using digital platforms to practice ESG
- Increase transparency: Digital platforms help businesses collect and report ESG data in a transparent and easily accessible manner. This helps investors, customers, and partners assess the company's commitment to ESG.
- Optimizing performance: The digital platform provides data analysis tools that help businesses identify weaknesses and improvement opportunities in their ESG activities. This helps businesses optimize performance and minimize negative impacts on the environment and society.
- Increasing competitiveness: The practice of ESG is increasingly becoming an important factor in business competition. Digital platforms help businesses build their brand and attract customers by demonstrating their commitment to ESG.
- Compliance with regulations: ESG regulations are becoming increasingly stringent. Digital platforms help businesses ensure compliance with regulations and avoid legal risks.
Read more: What is ESG report?
2. How does the digital platform help Vietnamese businesses practice ESG?
Data collection
IoT (Internet of Things): IoT devices are installed in factories, offices, warehouses... to continuously and automatically collect data on energy consumption, emissions, waste, working conditions, etc. This data is then transmitted to a digital platform for analysis and evaluation of the environmental impact of the business. Collect data from sensors and devices during the production process to assess environmental impact.
Big data: Processing large amounts of data from various sources (customers, suppliers, partners) to analyze and evaluate ESG indicators. The digital platform helps businesses focus on and analyze a large amount of data from various sources such as ERP systems, CRM, customer surveys, social data, etc.From there, businesses can identify trends, detect risks, and uncover opportunities related to ESG.
Automate the process of data collection and analysis, detecting trends and anomalies. AI (Artificial Intelligence): AI helps automate the data collection process, such as:
- Chatbot: Interact with customers to gather feedback on products, services, and social issues.
- Natural Language Processing (NLP): Analyzing posts and reports on social media to assess the reputation of the business.
- Computer vision: Analyzing images to assess working conditions, product quality, ...
Data processing and analysis
Digital platforms play a crucial role in processing and analyzing ESG data:
- Data analysis: Use analytical algorithms to evaluate the effectiveness of ESG activities, identify risks and opportunities.
- Data visualization: Representing data in the form of graphs and charts for easy understanding and presentation.
- Modeling: Building forecasting models to assess the impact of business activities on the environment and society.
Create reports
The digital platform has become an invaluable assistant for businesses in creating ESG reports. Thanks to automation capabilities, reports are generated quickly, accurately, and with complete information. At the same time, the high customization feature helps businesses create reports with a distinct personal touch, meeting the needs of each specific audience. For example, the Synesgy platform allows businesses to create their own set of questions, customize the report interface, and export reports in various formats.
- Automated reporting platform: Create ESG reports according to international standards (GRI, SASB,...) quickly and accurately.
- Integration with other systems: Connect with ERP and CRM systems to retrieve data and create unified reports.
- Export diverse reports: Export reports in various formats (PDF, Excel, HTML) to meet usage needs.
Data management and sharing
The digital platform helps collect, store, and analyze a large amount of data related to business activities, thereby creating a comprehensive picture of the impact of the business on the environment and society. Specifically:
- Centralized database: Store and manage all ESG data in one place.
- Safe data sharing: Share reports with stakeholders securely.
- Continuous updates: Regularly update data and reports to ensure accuracy and timeliness.
Promoting social responsibility
Supply chain management: Digital platforms help monitor the supply chain to ensure partners comply with labor, human rights, and environmental standards.
Training and interaction: Use e-learning platforms or internal communications to train employees on ESG, raising awareness and practicing social responsibility.
Community engagement: Social media platforms or mobile applications support businesses in connecting with the community, organizing charitable campaigns or social initiatives.
Promote innovation and collaboration
Collaboration platforms: Businesses can use collaboration platforms like Slack, Microsoft Teams to build ESG projects together with partners and communities.
Developing sustainable products: Digital technology supports businesses in developing environmentally friendly products and services through the use of data and digital design tools.
Meeting international requirements
Comply with global standards: Digital platforms help businesses monitor and implement international ESG standards such as GRI, SASB, or TCFD.
Connecting with investors: Digital platforms support businesses in sharing ESG initiatives with global investors, attracting additional development capital.
3. ERP & ESG Platform: The Perfect Combination
ERP (Enterprise Resource Planning), or Enterprise Resource Planning System, is comprehensive management software for all business activities, from finance and human resources to production and warehousing. So, how is ERP related to ESG? The answer is absolutely yes.
How ERP supports ESG practices
- Minimizing waste: ERP helps optimize resource usage, reducing material and energy waste.
- Waste management: ERP helps monitor and manage waste, ensuring proper waste disposal in accordance with regulations.
- Reducing emissions: ERP helps calculate the amount of emissions generated from the company's activities and proposes measures to reduce them.
- Energy management: ERP helps monitor and manage energy consumption, seeking opportunities for energy savings.
- Ensuring legal compliance: ERP helps businesses comply with environmental and social regulations.
ERP is often integrated with specialized ESG platforms to create a more comprehensive solution. These platforms often provide additional functions such as:
- Risk assessment ESG: Assess ESG-related risks and provide risk mitigation recommendations.
- Develop an action plan: Develop an action plan to achieve ESG goals.
- ESG Reporting: Create ESG reports according to international standards such as GRI.
4. Sota Solutions - ERP solution provider for Vietnamese businesses optimizing ESG reporting
In the context of Vietnamese businesses increasingly focusing on environmental, social, and governance (ESG) issues, Sota Solutions has established itself as one of the leading ERP solution providers, supporting businesses in optimizing ESG reporting.
With many years of experience working with both domestic and international businesses, Sota Solutions understands the challenges and opportunities that companies are facing. Sota Solutions provides highly customizable ERP solutions, tailored to the scale and specific characteristics of each business. Sota ERP solutions are integrated with modern data analysis tools, making it easy for businesses to monitor and evaluate the effectiveness of ESG activities.
Sota Solutions is a reliable partner to help Vietnamese businesses achieve their ESG goals. With flexible ERP solutions and a team of experienced experts, Sota Solutions will accompany businesses on their journey towards sustainable development.
5. Conclusion
In a world increasingly concerned with sustainable development, the application of ESG principles has become a crucial factor for the success of businesses. Digital platforms, especially ERP solutions like Sota Solutions, have played and continue to play an important role in supporting Vietnamese businesses in their ESG journey. By providing comprehensive tools and solutions, these platforms not only help businesses optimize their operations but also contribute to building a sustainable future for the community and society. Contact us to find the right business management solution for your company!