More companies than ever are recognizing that sustainable practices are not just ethical choices but essential ones for future-proofing their operations and securing a competitive edge.

Four key factors are pushing companies to act swiftly and decisively:

#1. Net zero goals are an inescapable reality

With governments worldwide committing to reducing fossil fuel dependency, decarbonizing your operations and supply chains is no longer just a goal—it’s a necessity. It’s up to you to turn net zero goals into reality with immediate, strategic action.

#2. We’ve entered an era of science-based targets

Your targets need to be science-based and backed by transparent climate plans detailing your path to sustainability. But the hard work pays off. With a surge in green financing, companies meeting sustainability requirements can access financial resources for eco-friendly initiatives.

#3. There’s a regulation tsunami

The ‘regulation tsunami’ means you need robust data reporting, including double materiality assessments to understand the financial impacts of sustainability risks and opportunities. These regulations are designed to prevent misleading claims and ensure you provide a transparent and accurate account of your environmental impact.

#4. Market forces are shifting

Customer expectations are also evolving; sustainability credentials are now scrutinized during the RFP process, where having verified, science-based targets can significantly increase your scoring.

Key challenges in corporate sustainability

If sustainability isn’t a choice anymore, what’s holding companies back?

Well, there are a range of challenges you might encounter, often stemming from structural and resource constraints or inefficient processes:

Structural challenges:

• Lack of integration: Sustainability often isn’t part of the core strategy or business development. This can lead to a lack of ownership and direction, making it hard to build momentum.
• Knowledge gaps: There’s a need for a deeper understanding of sustainability across your organization, not just within specialized teams. Sharing this know-how fosters a unified approach.
• Unclear roles: When roles and responsibilities around sustainability aren’t clearly defined, it leads to confusion and inefficiency.
• Scarce resources: Resources are usually tight, requiring initial investments to build a strong foundation for sustainable practices.

Process and data challenges:

• Poor data management: Strong data processes are essential to comply with standards like CSRD, especially since verifying data is now a must.
• Manual processes: Relying on one person using emails and spreadsheets for data collection just doesn’t cut it for effective data management.
• Data discrepancies: Data often ends up siloed and inconsistent without proper controls or automation.
• Reporting and transparency issues: Many data management systems lack support for auditing and visibility into data health, affecting transparency and stakeholder engagement. Infrequent data collection and reporting hinder the use of ESG data in strategic decision-making.

Overcoming these challenges means making sustainability an integral part of your company’s vision and operational methods.

Elisa’s blueprint for ESG excellence

For over a decade, Elisa Corporation has been a sustainability leader. They focus on four key areas:

• Environmental: Net zero by 2040, circular economy, climate innovations.
• Digital: Secure networks, ethical data practices.
• Social: Digital inclusion, equity, educational initiatives.
• Economic: Innovation, patent leadership, global collaboration.

Elisa’s 2030 climate plan uses data and a top-down approach to secure leadership commitment and encourage sustainability champions at all levels.

Recognized among the Global 100 best companies for sustainability, Elisa sees ESG as a chance to boost sustainability and cost-efficiency, navigating regulations with a collaborative, step-by-step strategy.

Unlocking ESG success with software

The future of ESG is software-supported, not software-solved. ESG reporting is complex, and while new tools can’t solve every problem, they can help you manage the complexity.

With software, you can overcome 4 key challenges:

• Mounting requirements: New and extensive reporting requirements are transforming how companies operate.
• Changing regulations: Frequent revisions to regulations add to the complexity.
• Data collection: Large volumes of data need to be consolidated from various sources.
• Collaboration: Effective collaboration not just within your organization but across the value chain is essential.

Practical benefits of software

• Process Control: Software streamlines data collection, analysis, and reporting. Automation reduces manual tasks.
• Tracking: Centralized notifications eliminate the need for external communication, making follow-up trackable.
• Engagement: Improved engagement with stakeholders and visibility into progress.
• Data Control: Ensures data reliability and cleanliness with validation processes.

With EHSQ software, like TenForce, you can control your processes, track actions and progress, centralize your data, and meet your changing business needs. We provide integrations with PowerBI and regulator content provider Enhesa. And we also offer modules for other business processes, such as audits, incident management, and risk management.

Lead the sustainability charge

As we look to the future, the integration of ESG goals into corporate strategy is a significant driver of innovation and competitiveness. Organizations that are early adopters of comprehensive ESG frameworks are likely to lead the way.

To find out more about how TenForce can help you manage your ESG efforts and stay on top of your goals, watch our recent webinar with Elisa Corporation. You’ll discover practical steps you can take to achieve your ESG and sustainability ambitions:

Watch Translating Sustainability & ESG Goals into Action with Elisa webinar for free

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Photo by JOSHUA COLEMAN on Unsplash