**Title:** Digital Transformation of Sustainability Reporting: Benefits and Challenges Explained
Welcome to our YouTube video on the digital transformation of sustainability reporting and the benefits it brings to companies and society as a whole. As the demand for corporate sustainability information continues to grow, it is crucial for businesses to embrace digital tools and practices for better management of sustainability issues.
In this video, Mahesh Joseph, Head of ESG Innovation and Customer Success at Navisto, an end-to-end sustainability reporting and management software platform, sheds light on the evolving approach to managing environmental, social, and governance (ESG) risks and opportunities. He emphasizes the need for decision-useful information that is widely available, comparable, and reliable.
Joseph explores how regulatory proposals by entities like the European Union and the state of California, as well as the preparatory work of the IFRS for an international sustainability standards board, are driving convergence towards a single set of sustainability reporting standards. This convergence extends to integrated financial and non-financial disclosures.
Companies are now tasked with providing decision-useful ESG information that is consistent, comparable, balanced, understandable, reliable, and timely. However, the complexity of sustainability and the immature reporting ecosystem pose challenges. Multiple voluntary reporting standards and frameworks, along with varied information requests from stakeholders, make it difficult for companies to determine what to report and where to put the information.
To address these challenges, Joseph highlights the need for a centralized data collection process and an integrated sustainability management platform. Such a platform serves as a system of record, allowing companies to keep all relevant documents, policies, and reports in one place. It streamlines data collection, ensures data quality, facilitates traceability, and enables compliance with sustainability disclosure requirements.
The integration of technology into sustainability reporting and data management brings numerous benefits. Automated data collection, through surveys, imports, or APIs, accelerates the process, reduces errors, and enhances collaboration with internal and external stakeholders. Digitization of responses to information requests and questionnaires enables better record-keeping and easier adaptation to changes over time.
Digital transformation also enables the classification and tagging of data, improving the accuracy of AI-powered data pools. It facilitates monitoring of performance metrics, analysis of performance against targets, and benchmarking against peers. Ultimately, it empowers companies to make informed decisions and drive positive change in their sustainability practices.
If you’re interested in learning more about the digital transformation of sustainability reporting and how it can benefit your company, be sure to watch the full video and explore the resources mentioned below.
– [European Union](https://ec.europa.eu/info/business-economy-euro/banking-and-finance/sustainable-finance_en)
– [State of California](https://oag.ca.gov/sustainability/reporting)
– [International Organization of Securities Commissions](https://www.iosco.org/)