Companies are being called to show more transparency and responsibility in areas such as the environment, society, and governance. Companies are actively looking for ways to collect reliable and trustworthy non-financial data, so that they can engage with their clients on a daily basis. This problem can be solved with the help of digital solutions.
Environment, society and governance
Companies have been using technology to optimize their results for decades. But how can the digital revolution be harnessed to ensure and even encourage sustainable business practices? In the field of environment, society and governance, companies are increasingly discovering the rapid expansion and potential of technology.
TOP 5 TECHNOLOGICAL INNOVATIONS
By redefining failed processes and records, as well as customer protection, this technology, which is in the spotlight, has already had a positive effect on the energy sector and financial services, among others. However, blockchain technology is only really revolutionizing supply chain management because it allows for greater transparency and efficiency.
2. Data mining
Understanding ESG risks and opportunities is becoming increasingly relevant for companies, especially as this information becomes non-negotiable for both regulators and stakeholders in the longer term. Companies who want a clear analysis of their ESG results face a real problem due to a shortage of homogeneous, high-quality data in an environment where data is being generated at an increasing rate. When data mining techniques advance in sophistication – from machine learning to optical character recognition – they have access to data and information that have never been easier to access and that both stakeholders will gain from easily and efficiently.
3. Artificial Intelligence (AI)
The Artificial Intelligence (AI) has the power to change companies’ ESG reporting processes, in addition to predicting and modelling environmental programs. The market is flooded with data regarding sustainability, and AI allows businesses to process this massive volume of data at breakneck pace. AI provides the ability to intelligently evaluate vast volumes of disparate data, providing sustainable new ways of doing business, as the importance of ESG data is better recognized and demand for it increases.
4. Internet of Things
The Internet of Things (IoT) is one of the most important technology advances in recent decades, and it will have a significant effect on the global economy. Since they have a global scope and can communicate with individuals and things that were historically completely unavailable, projects harnessing the strength of the IoT can lead to the achievement of the UN Sustainable Development Goals. The Internet of Things will encourage environmental growth – from intelligent cities to renewable electricity – by enhancing the quality of living in less developed parts of the planet, and it gives enterprises a chance to contribute to the UN Sustainable Development Goals.
5. Predictive Analytics
Companies will have access to improved decision-making resources and support mechanisms to extend their insights and shape their governance, especially on ESG issues, due to the enormous pace at which data will be generated and processed in the near future. in relation to Not only is it necessary to transform data into appropriate lessons for a company’s plan and long-term growth, but it is often necessary to deliver important knowledge to stakeholders. Predictive analytics can help with this problem by identifying related ESG problems, identifying risks, and comparing companies’ sustainability results to that of other market participants.