EDM Council, a cross-industry trade association for data management and analysis, has released its first research report offering first-hand ideas and recommendations for application of best practices related to environmental, social and governance (ESG) data management for corporate reporting entities.
The report carefully examines:
- Data Management Challenges Companies Face with ESG Data Disclosure and Reporting
- Who is responsible for the ESG information
- Data management plans and strategies to support ESG reporting
- ESG data quality in relation to direct and indirect data sources
- Data management capabilities related to internal and external audit and assurance
ESG reporting is still in an early stage, as rules and regulations develop and evolve. ESG reports provide important information about a company’s performance, risks, and overall strategy, and the resulting data is used by multiple stakeholders across the ESG ecosystem, including investors, asset owners, regulators, customers, suppliers, and employees. . The focus on ESG, including carbon emissions, biodiversity, water consumption, employee health and safety, gender diversity, equal pay, child labor, and culture and ethics, creates a unique set of challenges due to the complexities associated with the underlying data, and managing this data.
This document has been produced by the EDM Council ESG Working Group , which was formed in 2020 to investigate current data challenges across the ESG ecosystem. The working group approached the exercise by looking at the issue through the lens of a data professional in each constituent group: corporate information body, data aggregator / research / rating firm, investment / product creation firm, and owner of assets.
“Everyone is trying to understand how to incorporate ESG principles into their organizations’ strategies and use ESG data across the ESG ecosystem. Data is the glue that connects everything. As a result, ESG data and management of data is critical to all components and is still in the early stages of development, “said Eric Bigelsen, head of industry engagement and head of the EDM Council’s ESG working group. “This document examines considerations such as data reporting, where accountability for data lies, and specific advice from our ESG Working Group on key steps to improve ESG best practices within any organization.”
This EDM Council document on ESG corporate reporting entities is the first part of a series of documents that will contain the results of a nine-month study detailing ESG data challenges and recommendations. The report incorporates input from multi-industry data professionals, corporate sustainability reporting professionals, ESG experts and other business leaders in an effort spanning more than 80 participating organizations and more than 150 professionals.
