How can gathering ESG data benefit your business during hard times?
Times are tough, and all businesses are trying to find ways to cut costs and improve efficiency so that they can withstand what promises to be an expensive winter. Examining your sustainability credentials and the supply chain can be an important part of this process – and we have the tools which can help!
Read on to discover why gathering data can help you save money in the long run and support your business’s sustainability.
The cost of living is on the rise, and energy prices are at an all-time high. The conflict in Ukraine combined with inflation has hit everyone – with 93% of adults in Great Britain reporting an increase in their cost of living in August-September 2022.[1]
These challenges have been exacerbated by widespread labour shortages in many industries and ongoing supply issues – both factors which can make running a successful business incredibly difficult.
The levels of concern around this situation are not unfounded. Unless a solution is implemented soon, the future for many organisations looks bleak. This sentiment has been echoed by the media which have reported on fears of a “lost generation of small businesses as the impact of gas and electricity prices hits cafes, restaurants, shops and salons”.[2]
So as a business – how do you navigate these uncertain times? What should you be doing to minimise operational costs and futureproof your organization?
Your business is only as good as the people behind it – so employing and retaining good employees is a key part of ensuring your organisation performs at its optimum.
However, the job market has been significantly disrupted over the last few years. The coronavirus pandemic, Brexit and frustrations around pay and a work-life balance are just a few reasons behind the worldwide labour shortage – leaving many industries without the adequate staff needed to operate smoothly.
Making your organisation an attractive place to work is therefore a great step to ensuring its long term sustainability. Gathering data can be very helpful in this respect, and directly relates to ESG (Environmental, Social and Corporate Governance) reporting. These three different areas are the cornerstones of sustainability, and the standards a business sets in these areas are the main criteria that sustainability credentials are evaluated against.
Reporting on ESG data reveals the social impact of your business, which can incorporate everything from corporate culture and staff well-being through to working conditions and beyond. This data has potential to be very useful when it comes to attracting talent, as it can be used to positively differentiate your business from competitors and attract the right sort of talent who want to work for a fair, ethical company.
Whilst this data is great for highlighting the positive aspects of your business, it is also valuable in the fact it reveals areas that need improving. Reporting on ESG, for example, could show main areas of employee dissatisfaction – or make visible a gender pay gap through data such as remuneration ratio.
Whilst concerning energy bills will be predominately related to the recent price hikes, it may also be a result or exacerbated by outdated technologies or practices which are energy inefficient. This could be those within your immediate business, or by third parties as part of your wider supply chain.
The day-to-day responsibilities involved with running a business mean that often, reviewing operational practices or reporting on emissions data are not prioritised. However, measuring and reporting on key emissions data can be an incredibly useful thing to do when looking to improve efficiency.
This is because it provides tangible data which reveals where your largest emissions are – forcing you to consider energy-efficient alternative solutions which can be more cost-effective and environmentally friendly in the long-term.
In addition to identifying your largest areas of expenditure within the walls of your own business, it also enables you to deduce which of your suppliers could be providing you better value. Gathering data gives you the information you need to make more informed decisions and if necessary, switch to new suppliers that better align with your budget.
Measuring and reporting on key emissions data is also a great way of helping your business flourish in the long term.
In a time where both companies and consumers are increasingly looking to support organisations committed to reducing their environmental impact – reporting on key data, such as Scope 1, 2 and 3 emissions can be a powerful move.
As well as helping to secure new contracts with organisations that prioritise sustainability, being able to provide up-to-date emissions data can also encourage financial support from investors looking to expand their green portfolio.
Having access to this type of data shows your business is trying to improve its long-term viability by elevating its sustainability credentials and operating more efficiently in challenging economic times.
If you’re looking to make your business more financially and environmentally sustainable this winter and well into the future – we can help.
AXIOM provides your business with complete visibility, access and control over the data you require for quick and easy reporting. This is done using our carbon reporting software which seamlessly collates emissions data across the year, automatically calculates GHG emissions and accurately reports on Scope 1, 2 and 3 emissions.
To find out how we can help your business, please contact our team or book your Demo today at https://axiom-sustainability.com/why-choose-axiom/
[1] Rising cost of living in the UK – House of Commons Library (parliament.uk)
[2] ‘Lost generation’: small businesses folding across UK as energy bills land | UK cost of living crisis | The Guardian
Want to know more? Please get in contact with our team here.
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